QUEST TECHNICAL SERVICES LIMITED
Company number 02268316 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Score: A
Explanation: The company presents a strong, liquid balance sheet with no long-term debt, steadily growing shareholders’ funds, and a clean regulatory filing record. The grade is not higher because the filed accounts are filleted (the income statement is not delivered), which limits direct assessment of turnover and profitability.
1. Key Vital Signs
| Metric | Latest Figure (2025) | Interpretation |
|---|---|---|
| Current ratio | ~8.1 : 1 (current assets £1,063,827 vs current liabilities £130,631) | Exceptionally healthy liquidity. The company can cover its short-term obligations more than eight times over using current assets. |
| Cash ratio | ~5.3 : 1 (cash £686,806 vs current liabilities £130,631) | Very strong “circulation.” Cash alone covers short-term debts more than five times. |
| Net assets / Shareholders’ funds | £937,923 | Robust solvency. Equity has grown from £118,105 in 2016 to £937,923 in 2025. |
| Long-term debt | None disclosed | No borrowings beyond short-term creditors; the balance sheet carries no long-term financial strain. |
| Cash at bank | £686,806 (up from £211,432 in 2024) | Cash reserves more than tripled year-on-year, indicating strong cash generation and collection. |
| Debtors | £331,221 (down from £640,649 in 2024) | Improved collection of amounts owed to the business; trade debtors are £71,196 and other debtors £260,025. |
| Filing compliance | Accounts and confirmation statement not overdue | No signs of regulatory distress; the company remains active and in good standing. |
2. Symptoms Analysis
Healthy cash flow: Cash reserves are substantial and growing, while short-term liabilities are modest. This is the financial equivalent of a strong, steady pulse.
No symptoms of distress: The company is active, not in liquidation, administration, or receivership. There are no overdue filings and no indication of insolvency pressure.
Resolved historical symptom: The accounts state that a director’s loan balance of £343,191 at the start of the year was repaid during the year, leaving £18,354 at the year-end date; the accounts further state the loan was fully repaid after the year end. This removes a potential governance and liquidity risk that was visible in prior periods.
Limitation — missing “blood test” results: Because the company filed filleted accounts under the small companies regime, the profit and loss account is not publicly available. Retained earnings rose by approximately £160,630 during the year, which suggests profitability, but any dividends paid are not disclosed in the balance sheet. Without the income statement, we cannot directly assess turnover, gross margin, or net profit.
Concentration risk: One person with significant control holds more than 75% of shares and voting rights and has the right to appoint and remove directors. This creates a key-person dependency, similar to a patient reliant on a single vital organ.
3. Diagnosis
Overall condition: Financially fit. Quest Technical Services Limited has a strong, liquid balance sheet, no long-term debt, and a track record of consistent equity growth. It is not showing symptoms of insolvency or financial distress.
Primary health concerns: - Limited public visibility into profitability due to filleted accounts. - A sizeable “other debtors” balance (£260,025) that should be monitored to ensure it comprises recoverable amounts. - Dependence on a single controlling director/shareholder.
4. Prognosis
The outlook is positive. With cash equal to over five times current liabilities and no external debt, the company is well positioned to absorb short-term shocks. Continued strength will depend on converting debtors into cash, managing any related-party balances, and maintaining compliance with tax and filing obligations.
5. Recommendations
- Obtain full management accounts – Request monthly or quarterly profit and loss reports to monitor turnover, margins, and net profit, since the filed accounts exclude the income statement.
- Review other debtors – Examine the £260,025 balance to confirm it consists of recoverable items (e.g., prepayments, VAT) and does not conceal unresolved related-party amounts.
- Adopt a dividend policy – With retained earnings of £927,923 and strong cash reserves, consider a transparent policy for distributing surplus funds or reinvesting in the business.
- Address key-person dependency – Put succession planning or key-person insurance in place given the concentrated ownership and single-director structure.
- Maintain tax discipline – Continue settling corporation tax, PAYE, and NIC on time to preserve the clean compliance record.
- Deploy surplus cash strategically – Evaluate whether the £686,806 cash balance should be retained as a reserve, invested in growth, or returned to shareholders.