SRINA.S LTD
Company number 07492380 · 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 Assessment: SRINA.S LTD (Company No. 07492380)
1. Financial Health Score: B
Grade: B — Stable with minor symptoms requiring monitoring
The company is solvent, liquid, and up to date with its filings. It has built positive net assets over a ten-year period and shows no immediate signs of distress. However, the balance sheet has contracted materially from its peak, the filed accounts provide limited visibility into profitability, and the share capital is nominal. This is a company in sound condition but currently in a consolidation phase rather than a growth phase.
2. Key Vital Signs
| Vital Sign | Latest Reading | Interpretation |
|---|---|---|
| Net Assets (Solvency) | £61,734 at 31 Jan 2026 | Positive and ten times higher than in 2017 (£1,068). The business owns more than it owes. |
| Current Ratio (Liquidity) | Approximately 8:1 (2026) | Current assets of £61,819 against creditors of £7,707. Very strong short-term liquidity; the company can comfortably cover near-term obligations. |
| Total Assets (Scale) | £70,441 (2026), down from £147,784 (2022) | A significant contraction in the balance sheet. This warrants investigation to determine whether it is planned or reflects reduced activity. |
| Creditors / Short-Term Debt | £7,707 (2026), down from £43,339 (2025) | External claims on the business have fallen sharply, improving the balance sheet but potentially reducing supplier credit. |
| Filing Compliance | Accounts and confirmation statement not overdue | The company is meeting its statutory obligations. No penalties are indicated. |
| Share Capital | £4.00 | Nominal capital. The balance sheet is supported almost entirely by retained earnings rather than shareholder investment. |
The filed accounts state the company is a micro-entity, audit-exempt, and that the average number of employees during the year was one.
3. Symptoms Analysis
Symptom 1: Balance sheet “weight loss”
Total assets have fallen from a peak of £147,784 in 2022 to £70,441 in 2026. In medical terms, this is like a patient losing a significant amount of body weight quickly. It may be intentional (selling down stock, collecting debts, or reducing fixed assets) or it may signal shrinking trade. Without a profit and loss account in the data provided, it is not possible to confirm which.
Symptom 2: Strong pulse, unclear temperature
Liquidity is excellent (current ratio around 8:1), but profitability cannot be assessed from the balance sheet alone. A company can be liquid while making losses if it is selling assets or collecting old debts. The accounts state net assets rose only modestly from £60,546 in 2025 to £61,734 in 2026, suggesting the business is holding steady rather than expanding.
Symptom 3: Thin skeletal structure
Share capital of £4 means the company’s resilience depends entirely on retained profits. There is no large cushion of shareholder funds to absorb future shocks.
Symptom 4: Single-person dependency
The accounts state an average of one employee. If that individual is unavailable, operational continuity could be at risk.
Positive sign: Creditors have fallen from £43,339 to £7,707 in one year, meaning the company has reduced its short-term obligations significantly and improved its solvency position.
4. Diagnosis
Overall condition: Stable, in consolidation
SRINA.S LTD is not in distress. It is solvent, has strong short-term liquidity, and is compliant with Companies House filing requirements. The business has successfully built net assets from a very low base in 2017 to over £60,000 today.
However, the diagnosis is “stable but static.” The sharp reduction in total assets since 2022, combined with flat net asset growth over the last three years, suggests the company is digesting previous growth rather than expanding. The main clinical concern is the limited diagnostic information available: the filed micro-entity accounts show a statement of financial position but do not, in the data provided, reveal turnover, gross profit, or operating cash flow.
5. Prognosis
Outlook: Stable, with a need for closer monitoring
If the asset contraction reflects a deliberate reduction in inventory or repayment of debts, the prognosis is benign. The company enters any future period with low liabilities and high liquidity.
If the contraction reflects falling sales or reduced trading activity, the company could see its liquidity erode over time. The single-employee structure and nominal share capital mean there is little organisational or financial redundancy to absorb a downturn.
6. Recommendations
-
Obtain a profit and loss account and cash flow statement
The balance sheet shows where the company stands, but not how it is performing. Request or prepare management accounts to assess turnover, gross margin, and operating cash flow. -
Investigate the decline in total assets
Determine whether the fall from £147,784 (2022) to £70,441 (2026) is planned (e.g., stock reduction, debt collection) or unplanned (e.g., declining trade). This is the most important symptom to clarify. -
Protect the strong liquidity position
Maintain the current practice of keeping creditors low relative to current assets. Avoid taking on new short-term debt unless it is matched by clear revenue generation. -
Review capital structure
Consider whether the £4 share capital is adequate for future ambitions. If retained profits are to be used for growth, a formal capitalisation or dividend policy may be appropriate. -
Plan for key-person risk
Given the accounts state there is one employee on average, document key processes and consider contingency arrangements should that person be unavailable. -
Maintain filing discipline
Continue to submit accounts and confirmation statements on time to preserve the company’s clean regulatory record and avoid penalties.