SYNCORD LTD

Executive Summary

SYNCORD LTD exhibits a mixed financial profile characterized by a recent recovery from a significant net asset deficit to a modestly positive position, accompanied by improved liquidity. However, fluctuations in financial stability and minimal equity capital present moderate risk concerns. The company’s compliance record is strong, but further inquiry into the reasons for financial volatility and operational scalability is warranted to ensure continued viability.

SYNCORD LTD - Analysis Report

Company Number: 13138383

Analysis Date: 2025-07-20 14:50 UTC

1. Risk Rating: MEDIUM
   While SYNCORD LTD has shown a notable turnaround in net assets from a significant deficit in 2024 to a positive net asset position in 2025, the volatility in its financials over recent years signals moderate risk. The micro-entity scale limits financial disclosure detail, which constrains comprehensive risk assessment.

2. Key Concerns:

• Volatility in Financial Position: The company’s net assets swung from a negative £30,376 in 2024 to a positive £11,756 in 2025, reflecting instability in capital structure and possibly inconsistent profitability or cash flow management.
• Low Share Capital: With only £1 share capital, the company has minimal equity buffer to absorb losses, which could impair solvency if adverse events occur.
• Reduction in Workforce: Average number of employees halved from 4 to 2 in the latest period, potentially indicating downsizing which may affect operational capacity and revenue generation.

3. Positive Indicators:

• Improved Liquidity Position: As of 31 January 2025, net current assets stand at £9,997 compared to a negative £33,272 the prior year, suggesting enhanced ability to meet short-term liabilities.
• Timely Filing and Compliance: Accounts and confirmation statements are filed on time, indicating adherence to regulatory requirements and good governance practices.
• Experienced Management Team: Directors are professionals with relevant backgrounds (recruitment and software development), and the company operates in a specialized niche (construction recruitment), which may provide competitive advantage.

4. Due Diligence Notes:

• Investigate the causes behind the substantial financial turnaround between 2024 and 2025, including any extraordinary income, asset disposals, or capital injections.
• Review detailed cash flow statements (if available) to assess operational cash generation and liquidity sustainability.
• Examine client contracts and pipeline to evaluate the sustainability of revenue streams given recent employee reductions.
• Confirm no undisclosed contingent liabilities or off-balance-sheet exposures exist that could impair solvency.
• Verify director backgrounds and any potential related party transactions given the overlapping shareholding and directorships.