SSA ENGINEERING LTD

Executive Summary

SSA ENGINEERING LTD is a newly established micro-entity showing positive net assets and a healthy working capital position, indicating no immediate financial distress. However, the company's very small scale and limited financial history suggest it remains vulnerable and in an early growth phase. Continued focus on revenue generation, liquidity management, and regulatory compliance will be critical to its financial wellness moving forward.

SSA ENGINEERING LTD - Analysis Report

Company Number: 14811336

Analysis Date: 2025-07-29 13:55 UTC

Financial Health Assessment Report for SSA ENGINEERING LTD

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1. Financial Health Score: B-

Explanation:
SSA ENGINEERING LTD shows a positive net asset position and healthy working capital for a micro-entity in its first financial year. However, the absolute scale of the financials is very small (£345 net assets), reflecting a nascent stage with limited operational scale. The absence of revenue and profitability data limits deeper analysis. The company is solvent with no overdue filings, which is positive. Overall, the company exhibits early signs of financial stability but remains vulnerable due to its very small asset base and limited financial history.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	445	Minimal cash or equivalents, indicating limited liquidity but sufficient to cover immediate obligations.
Current Liabilities	100	Low short-term debts, manageable with available current assets.
Net Current Assets	345	Positive working capital ("healthy cash flow buffer"), indicating ability to meet short-term liabilities.
Total Assets Less Current Liabilities	345	Net asset position, positive but very modest in size.
Net Assets / Shareholders Funds	345	Equity fully positive, showing the owner’s funds invested exceed liabilities.
Number of Employees	1	Micro-entity with a single employee (likely the director), consistent with a start-up phase.
Account Category	Micro	Simplified reporting, small scale operation, limited financial complexity.
Overdue Filings	No	Compliance with regulatory deadlines supports operational credibility and reduces risk.

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3. Diagnosis: What the Financial Data Reveals About Business Health

SSA ENGINEERING LTD is in its infancy, incorporated less than a year ago, and currently operates as a micro-entity with minimal financial activity. Its balance sheet shows a modest positive net asset position of £345, indicating that it has started with a small capital base and has not yet accumulated significant assets or liabilities.

The company’s working capital (net current assets) is positive, which is a good "vital sign" indicating it can meet its immediate financial obligations without distress. The low current liabilities relative to current assets further reinforce this.

However, the absolute values are very small, which is typical for a newly formed micro-entity but also suggests limited operational scale and financial resources. No profit and loss data is provided, so it is unclear if the company is generating revenue or incurring losses, which are "symptoms" that would provide a clearer picture of operational health.

The company has one director who also appears to be the sole shareholder with full control, aligning with a tightly-held, founder-operated start-up structure. The industry classification relates to the sale, maintenance, and repair of motorcycles and vehicle parts, which can be capital intensive as it grows.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Build Revenue Streams and Monitor Profitability:
   Establish clear income sources and closely track profit and loss to identify early "symptoms" of financial stress or growth opportunities.

2. Increase Working Capital Buffer:
   As the business develops, aim to increase cash reserves and reduce reliance on short-term liabilities to maintain a healthy liquidity cushion.

3. Maintain Regulatory Compliance:
   Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

4. Develop Financial Reporting Beyond Micro-entity Level:
   As the business grows, consider transitioning to more comprehensive financial reporting to gain deeper insights into business performance and risks.

5. Plan for Scaling Operations:
   Evaluate capital needs for inventory, equipment, or staffing as the company moves beyond the start-up phase, ensuring financial resources support sustainable growth.

6. Engage Professional Financial Advice:
   Periodic reviews by financial experts can help diagnose early signs of distress and optimize tax, funding, and operational strategies.

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