Company Number: 13921280

Analysis Date: 2025-07-29 12:09 UTC

Financial Health Assessment Report: STAR GEOMATICS LTD

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1. Financial Health Score: B

Explanation:
STAR GEOMATICS LTD demonstrates a solid and stable financial footing for a micro-entity company in its early years. The company’s net assets and shareholder funds have shown consistent growth year-over-year, indicating a positive trajectory. The absence of liabilities within current assets and net current assets suggests a "healthy cash flow" position, akin to a patient with stable vital signs and no immediate distress symptoms. However, as a micro-entity with limited financial complexity and no reported profit and loss detail, there is moderate uncertainty about operational profitability and cash generation beyond asset accumulation. Therefore, a grade B reflects a generally healthy condition with room for improvement in financial robustness and operational transparency.

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2. Key Vital Signs (Financial Metrics and Interpretation):

Metric	2025 Value (£)	Interpretation
Fixed Assets	10,495	Shows investment in long-term resources; stable
Current Assets	36,398	Strong liquid resources, indicating good liquidity
Net Current Assets	36,398	Positive working capital; company can cover short-term obligations comfortably
Total Assets Less Current Liabilities	46,993	Overall asset base net of immediate debts, growing steadily
Net Assets / Shareholders Funds	46,993	Equity capital robust and growing; no reported liabilities
Average Number of Employees	2	Small team, typical for micro-entity classification

Interpretation:

• The company maintains a "healthy cash flow" position with net current assets equal to current assets, implying no short-term liabilities.
• Consistent growth in net assets from £24,096 (2022) to £46,993 (2025) signals capital accumulation and strengthening equity base.
• Fixed assets remain stable, indicating no major capital expenditure or asset impairment.
• The company operates as a micro-entity, limiting data granularity, but the balance sheet shows no signs of "symptoms of distress" such as negative net assets or excessive liabilities.

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3. Diagnosis (Overall Financial Condition):

STAR GEOMATICS LTD is in a stable financial condition, showing steady growth in net assets and strong liquidity. The company's balance sheet resembles a patient maintaining normal vital signs — no immediate financial distress or risk signals are evident. The absence of current liabilities suggests good short-term financial management, while ownership and control are clearly defined between two directors with significant shareholdings.

However, the company’s micro-entity status limits detailed insight into profitability, cash flow from operations, and debt structure beyond the balance sheet. The company is relatively young (incorporated in 2022), so it is still in an early growth phase. The small employee base (2) aligns with the micro-entity size and likely reflects a lean operational model, but may constrain rapid expansion or diversification.

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4. Recommendations (Actions to Improve Financial Wellness):

• Enhance Profitability Tracking: Even though micro-entities have minimal filing requirements, consider maintaining detailed internal profit and loss accounts to better monitor operational performance and identify cost efficiencies or revenue growth opportunities.

• Maintain Healthy Working Capital: Continue to monitor current assets and liabilities closely to sustain positive net current assets, ensuring "healthy cash flow" and liquidity to meet obligations without strain.

• Plan for Growth Capital Needs: As the company grows, evaluate the need for external financing or increased equity injection to fund fixed asset acquisition or expansion beyond the current asset base.

• Strengthen Governance and Reporting: With two active directors holding significant control, ensure transparent corporate governance and consider appointing or training staff for compliance and financial administration to support scalability.

• Risk Assessment and Contingency Planning: Regularly review market risks especially given the construction-related SIC code (43999), which can be sensitive to economic cycles, to pre-empt any "symptoms of distress" like delayed payments or reduced contract flow.

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