SYNERGY 3D SOLUTIONS LIMITED

Executive Summary

Synergy 3D Solutions Limited is a newly formed engineering design company with a modest asset base and positive cash position but facing slight working capital pressure due to current liabilities exceeding current assets. The company shows early signs of operational success but needs to manage liquidity carefully and strengthen equity to ensure sustainable growth. With prudent financial management and careful monitoring, the company’s prognosis remains cautiously positive.

SYNERGY 3D SOLUTIONS LIMITED - Analysis Report

Company Number: 14738972

Analysis Date: 2025-07-29 13:31 UTC

Financial Health Assessment for SYNERGY 3D SOLUTIONS LIMITED

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1. Financial Health Score: Grade C

Explanation:
SYNERGY 3D SOLUTIONS LIMITED is a very young private limited company, incorporated in March 2023, with its first financial year ending March 2024. The company is in the early stages of development, reflected in modest asset levels and small equity base. The financials show a slight working capital deficit and low net assets, which is typical for a startup phase but requires careful monitoring. Overall, the company is stable but shows early "symptoms of financial strain" due to current liabilities slightly exceeding current assets.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£1,037	Small investment in tangible assets, appropriate for startup.
Current Assets (Cash)	£10,486	Healthy cash balance for initial operations, good liquidity.
Current Liabilities	£11,057	Slightly higher than current assets, indicating a working capital deficit (-£571).
Net Current Assets	-£571	Negative working capital, a mild symptom of short-term liquidity pressure.
Total Net Assets	£466	Low equity base, typical for a new company but limits financial buffer.
Shareholders' Funds	£466	Equity capital mainly from initial investment and retained earnings.
Profit and Loss Reserve	£366	Company has retained some earnings, indicating initial operational success.
Number of Employees	2	Small team, typical for a micro or small company.

Additional Notes:

• The company carries a corporation tax creditor (£9,225), which increases current liabilities and impacts working capital.
• The director has loaned £213 to the company, showing some internal funding support.
• No overdue filings or legal issues noted, indicating good compliance health.
• Industry classification (SIC 71121) confirms focus on engineering design activities, which may require ongoing investment in equipment and intellectual assets.

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3. Diagnosis: Financial Condition Assessment

SYNERGY 3D SOLUTIONS LIMITED is akin to a patient in the "startup phase"—with initial capital and some operational cash flow but facing the usual early-stage challenges:

• Liquidity: The company has a "healthy cash flow" foundation with £10,486 in cash, but the slightly negative working capital (-£571) signals tight short-term liquidity that must be managed carefully to avoid distress.
• Capital Structure: With net assets at £466, the company has limited financial cushioning. This "thin equity skin" means it is vulnerable to unexpected expenses or downturns.
• Profitability: Although detailed profit & loss data is not provided, the presence of a positive P&L reserve (£366) indicates some early profitability or retained earnings, a positive sign.
• Debt Position: Current liabilities mainly consist of corporation tax and VAT, which are typical obligations but require timely payment to avoid penalties.
• Growth Stage: As a newly incorporated company, the financials suggest an early growth stage with cautious investment in fixed assets and a small workforce supporting operations.

Underlying Symptoms:
The negative working capital is a mild symptom of cash flow timing or tax liabilities. The company must avoid this symptom worsening into a more severe liquidity crisis. The "fragile financial pulse" of low equity means growth should be carefully managed to maintain financial balance.

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4. Recommendations

To improve financial wellness and strengthen financial health, the following actions are advised:

1. Improve Working Capital Management:

   • Aim to reduce current liabilities through timely payment of tax obligations and negotiating payment terms with creditors.
   • Consider accelerating receivables and monitoring cash flow closely.

2. Build Equity Buffer:

   • Consider additional capital injection or retained earnings reinvestment to increase net assets and provide a stronger financial cushion.
   • Explore options like director loans or small external funding if growth plans require.

3. Monitor Tax Liabilities:

   • Plan for corporation tax payments carefully to avoid liquidity shocks from large tax bills.
   • Utilize tax planning strategies to optimize cash flow timing.

4. Control Operating Costs:

   • Maintain tight control on expenses during this early phase to prevent overextension.
   • Ensure that capital expenditure aligns with strategic growth and cash availability.

5. Regular Financial Reviews:

   • Conduct monthly cash flow forecasts and financial health check-ups to catch early "symptoms of distress."
   • Use these reviews to inform decision making and maintain financial stability.

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