SRA TREE SERVICES LTD

Executive Summary

SRA TREE SERVICES LTD is a micro-entity operating in landscape services, demonstrating modest but positive net assets and compliance with filing obligations. While its small scale and declining working capital suggest some liquidity caution, there is no immediate indication of solvency risk or regulatory non-compliance. Further inquiry into cash flows and operational sustainability is recommended to fully assess investment risk.

SRA TREE SERVICES LTD - Analysis Report

Company Number: 13630699

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: LOW to MEDIUM
   The company exhibits a positive net asset position and current assets exceeding current liabilities, indicating solvency. However, the relatively low absolute figures and the decline in net current assets year-over-year suggest caution.

2. Key Concerns:

• Declining Net Current Assets: Net current assets decreased from £3,259 in 2023 to £1,261 in 2024, signaling a reduction in working capital and potential liquidity strain.
• Limited Scale and Resources: As a micro-entity with only one employee, the company's operational capacity and financial resilience may be limited, increasing vulnerability to business disruptions.
• Minimal Financial Disclosure: Micro-entity accounts provide limited insight into profitability, cash flows, or debt structure, restricting comprehensive risk assessment.

3. Positive Indicators:

• Compliance and Timeliness: Accounts and confirmation statements are filed on time with no overdue filings, reflecting good regulatory compliance and governance.
• Positive Net Assets and Working Capital: Although modest, the company maintains positive net assets and net current assets, indicating the ability to meet short-term obligations.
• Stable Incorporation and Active Status: Incorporated in 2021 and currently active without liquidation or administration proceedings, suggesting ongoing operational stability.

4. Due Diligence Notes:

• Investigate the causes behind the decline in net current assets and whether this trend is expected to continue.
• Review cash flow statements or bank statements (if available) to assess liquidity beyond balance sheet figures.
• Confirm the business model's sustainability given the small scale and single employee, including client concentration and contract stability.
• Verify director background and any related-party transactions that might impact financial health.
• Assess potential off-balance-sheet liabilities or contingent risks not captured in micro-entity accounts.