SYSKIT UK LIMITED

Executive Summary

SYSKIT UK LIMITED demonstrates strong financial stability and liquidity, underpinned by substantial investments and positive working capital. The company’s main risk lies in its reliance on a large interest-free related-party loan repayable on demand, which requires careful management. Overall, the financial outlook is positive with appropriate focus on profitability and governance.

SYSKIT UK LIMITED - Analysis Report

Company Number: 14333305

Analysis Date: 2025-07-29 15:05 UTC

Financial Health Assessment of SYSKIT UK LIMITED

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1. Financial Health Score: B

Explanation:
SYSKIT UK LIMITED shows strong capitalization and solid asset backing, particularly through significant investments. The company’s net assets are healthy relative to its liabilities, indicating good financial stability. However, the presence of a large interest-free loan repayable on demand introduces a potential liquidity risk that warrants close monitoring. Overall, the financial "vital signs" are good but not without some cautionary notes.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets (Investments)	4,264,781	High investment in subsidiary supports long-term business base
Current Assets	1,836,845	Includes healthy cash balance (£1.76M), indicating strong liquidity
Current Liabilities	941,205	Significant short-term debts, largely an interest-free loan
Net Current Assets	895,640	Positive working capital ("healthy cash flow environment")
Net Assets / Shareholders' Funds	5,160,421	Indicates solid equity base ("strong financial backbone")
Share Capital	3,006	Nominal amount, typical for a private limited company
Profit & Loss Account	-380	Slight deficit; minimal impact at this stage
Loan from Related Party	872,596	Interest-free loan repayable on demand; a potential liquidity "symptom" to watch

Additional Notes:

• The company has no employees reported for the period, indicating it may be in an early development or investment phase.
• The loan from Cade Hill Investments Ltd (a significant shareholder) is interest-free and repayable on demand—this is a liquidity risk "symptom" as it could be called in unexpectedly.
• The company’s investment in its Croatian subsidiary forms the bulk of its fixed assets, showing strategic deployment of capital in related operations.

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3. Diagnosis

SYSKIT UK LIMITED exhibits a healthy financial condition with strong equity and positive working capital. The company’s significant investment in a wholly-owned software development subsidiary suggests it is well-positioned in its niche (business and domestic software development). The high cash reserves are a positive "pulse" indicating liquidity strength.

However, the interest-free loan repayable on demand from a related party, while providing immediate liquidity, represents a potential "symptom of distress" if the lender demands repayment suddenly. The slight deficit in the profit and loss account is negligible at this stage and can be expected in a start-up or early growth company.

Given that the company was incorporated in late 2022 and the accounts cover only a short period, it is understandable that profitability is not yet established. The absence of employees could imply reliance on contractors or a holding company structure.

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4. Recommendations

• Monitor Related Party Loan Risk: Develop a contingency plan for the repayment of the interest-free loan from Cade Hill Investments Ltd. Consider converting part of this loan to equity or formalising longer-term repayment terms to avoid sudden liquidity shocks.
• Focus on Profitability: As the company matures, focus on generating sustainable revenues and controlling operating costs to move the profit and loss account into positive territory.
• Strengthen Governance: Ensure transparent reporting and compliance with filing deadlines to maintain confidence among shareholders and creditors.
• Cash Flow Management: Maintain "healthy cash flow" by monitoring receivables and payables closely, given the current positive working capital.
• Strategic Growth: Leverage the investment in the Croatian subsidiary to expand product offering and market reach, converting fixed assets into revenue streams.

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Summary

SYSKIT UK LIMITED is financially stable with a solid asset base and healthy liquidity, reflecting a strong financial "heartbeat." While early-stage and lightly staffed, it shows promise with strategic investments. The primary caution is the reliance on a sizeable related-party loan that could affect liquidity if recalled unexpectedly. With prudent financial and operational management, the company has a good prognosis for growth and profitability.

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