SVERIGE LTD

Executive Summary

Sverige Ltd is a well-positioned micro enterprise with positive net assets and working capital, indicating healthy financial "vital signs" for its start-up phase. There are no immediate financial distress symptoms, but cautious cash flow management and profitability monitoring are essential for sustainable growth. Focused efforts on building cash reserves and planning for growth will support the company’s financial wellness moving forward.

SVERIGE LTD - Analysis Report

Company Number: 14557640

Analysis Date: 2025-07-29 20:52 UTC

Financial Health Assessment of Sverige Ltd as of 31 December 2023

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1. Financial Health Score: B

• Explanation:
  Sverige Ltd demonstrates a solid start-up financial profile with positive net assets and working capital. The company is in a "healthy cash flow" state for its size and age, showing no signs of financial distress. However, the absolute scale of assets and liabilities is minimal, reflecting its micro-enterprise status. There is room for growth and strengthening liquidity buffers as the business scales.

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2. Key Vital Signs

Vital Sign	Value (GBP)	Interpretation
Current Assets (Cash)	£2,121	Cash reserves are positive but limited, reflecting initial capital or early cash inflows.
Current Liabilities	£922	Short-term obligations are modest, manageable relative to assets.
Net Current Assets	£1,199	Positive working capital indicates the company can cover short-term debts comfortably.
Net Assets (Equity)	£1,199	Shareholders’ funds are positive, signaling financial stability at this early stage.
Share Capital	£1	Minimal paid-up capital, typical for a recently incorporated micro business.
Employees	1	Sole director-operated, small scale operation with low overhead.
Turnover & Profit Data	Not disclosed	Profit and loss account not filed publicly; unable to assess profitability or revenue growth.

• The company's accounting category ("Total Exemption Full") indicates simplified reporting, common for micro-entities.
• No audit performed; financials are unaudited, so figures should be treated as management-prepared.
• Positive net current assets and net assets indicate no immediate liquidity risks or overleveraging.
• The director personally owns 75-100% shares and controls voting, indicating clear ownership and decision control.

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3. Diagnosis: Financial Condition Overview

Sverige Ltd’s financial "vital signs" resemble those of a young, micro-sized business in its early growth phase. The "healthy cash flow" symptom is present with cash exceeding current liabilities, a good sign for day-to-day operations. Net assets are positive but minimal, reflecting the company’s start-up capital and accumulated retained earnings or reserves.

There are no symptoms of financial distress such as negative working capital, accumulated losses, or high short-term debt. The lack of a profit and loss account filing limits our ability to diagnose profitability and revenue trends, but the balance sheet suggests the company is stable and solvent.

The company’s small scale ("micro" classification) and single director structure reduce complexity but also highlight vulnerability to business risks that could impact the sole operator. The company is not burdened by debt or obligations, which is positive.

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4. Recommendations: Steps to Improve Financial Wellness

1. Build Cash Reserves:
   Increase cash holdings to create a buffer against unexpected expenses or downturns. Healthy cash flow management should be a priority to avoid liquidity "symptoms" such as cash shortages.

2. Monitor Profitability Closely:
   Although profit/loss data is not publicly available, the director should ensure the business remains profitable or at least cash flow positive as it grows. Early losses can become chronic if unchecked.

3. Plan for Growth and Capital Needs:
   As turnover is likely to grow (retail via internet), consider planning capital injections or credit facilities to finance inventory or marketing investments without stressing cash flow.

4. Maintain Accurate and Timely Filing:
   Continue complying with filing deadlines and consider voluntary audit or external review if business complexity increases to boost stakeholder confidence.

5. Risk Management:
   With a single director and shareholder, consider succession planning or advisory support to mitigate operational risks.

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