SYSDA TECH LTD

Executive Summary

SYSDA TECH LTD is financially stable with strong short-term liquidity and positive net assets, reflecting a healthy start for a micro-entity. While the company shows no immediate symptoms of financial distress, attention to its long-term liabilities and governance structure will be key to sustaining growth and improving overall financial health.

SYSDA TECH LTD - Analysis Report

Company Number: 14461042

Analysis Date: 2025-07-29 16:40 UTC

Financial Health Assessment of SYSDA TECH LTD

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1. Financial Health Score: B

Explanation:
SYSDA TECH LTD shows a generally sound financial position for a newly incorporated micro-entity. The company has maintained positive net current assets and net assets, reflecting prudent management of working capital and a stable equity base. However, the presence of some longer-term liabilities and the limited scale of operations suggest room for improvement to reach an "A" grade.

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2. Key Vital Signs

• Net Current Assets (Working Capital): £4,231
  Indicates a healthy short-term liquidity position. The company has enough current assets to cover its short-term liabilities by more than double, which is a good sign of operational stability and the ability to meet immediate financial obligations without strain.

• Net Assets: £3,183
  Positive net assets reflect that the company’s total assets exceed its liabilities, signifying a solvent business with a solid equity foundation.

• Long-term Liabilities: £1,048
  The company carries some non-current liabilities. While not alarming at this early stage, these require monitoring to ensure they do not become a burden as the company grows.

• Shareholders’ Funds: £3,183
  Equity entirely attributable to the sole shareholder aligns with the company’s private limited structure and indicates that the business is financed through owner investment rather than debt.

• Employee Count: 1 (average)
  Reflects a micro-sized operation, typical for a start-up or small IT consultancy.

• Profit & Loss Account Not Filed Publicly
  This limits insight into profitability, but the balance sheet suggests no immediate financial distress.

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3. Diagnosis

SYSDA TECH LTD’s financial "vital signs" indicate a "healthy cash flow" and a stable balance sheet for a micro-entity in its first year of trading. The positive net working capital is akin to a patient's strong pulse and good blood pressure—signs of operational vitality. The presence of some longer-term debt is like a mild symptom that requires attention but is not yet critical.

The company’s reliance on a single director and shareholder with full control is typical for start-ups but introduces potential governance risks and dependency on one individual’s capacity. The micro-entity accounting regime and exemption from audit reflect a small scale, which limits the depth of financial data available but aligns with the company’s current size and stage.

Overall, the company is financially solvent and not showing symptoms of distress such as negative net assets or overdue filings, which are crucial indicators of financial health.

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4. Recommendations

To improve financial wellness and prepare for growth, the company should consider:

• Maintain Strong Working Capital Management:
  Continue to ensure current assets exceed short-term liabilities, preserving the "healthy cash flow" essential to day-to-day operations.

• Monitor and Manage Long-Term Liabilities:
  Develop a plan to either reduce or restructure non-current liabilities to avoid future liquidity strain.

• Increase Financial Transparency:
  Although exempt from audit, consider voluntarily preparing a profit and loss account and cash flow statement for internal review and potential investor confidence.

• Strengthen Governance Practices:
  As the company grows, consider diversifying management roles or appointing additional directors to mitigate key-person risk.

• Plan for Scaling:
  Strategically plan for increased employee headcount and investment in fixed assets to support business expansion while safeguarding financial health.

• Regular Financial Health Checks:
  Conduct periodic financial reviews to catch early "symptoms" of financial stress such as declining working capital or increasing liabilities.

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