A2B ANALYTICS LIMITED

Executive Summary

A2B ANALYTICS LIMITED shows early signs of financial distress characterized by negative net assets and poor liquidity, reflecting the challenges of a start-up in its infancy. Urgent focus on capital injection and cash flow management is essential to restore financial health and ensure operational viability.

A2B ANALYTICS LIMITED - Analysis Report

Company Number: 14877275

Analysis Date: 2025-07-29 19:00 UTC

Financial Health Assessment of A2B ANALYTICS LIMITED

---

1. Financial Health Score: D

Explanation:
The company shows clear symptoms of financial distress with negative net current assets and net liabilities. As a micro-entity, it is in its infancy stage (incorporated May 2023) but already displays a weak liquidity position and negative equity, which are early warning signs warranting close attention.

---

2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£1	Extremely low liquid assets, nearly no cash or receivables. Indicates very limited short-term resources.
Current Liabilities	£312	Obligations due within one year exceed liquid assets significantly.
Net Current Assets	£-311	Negative working capital, a symptom of liquidity strain—unable to cover short-term debts with short-term assets.
Total Assets less Current Liabilities	£-311	Negative indicates liabilities exceed assets after accounting for current liabilities.
Net Assets (Equity)	£-610	Negative net worth, indicating accumulated losses or capital deficiency.
Shareholders' Funds	£-610	Reflects owner's investment and retained earnings are negative, indicating financial distress.

Additional Notes:

• The company has only one employee (the director), consistent with a micro-sized entity.
• The accounts are unaudited but comply with micro-entity reporting standards, limiting detail but still showing key figures.
• The director, Mr Alexander Barrett, holds 75-100% control, implying sole decision-making responsibility.

---

3. Diagnosis: Financial Condition

A2B ANALYTICS LIMITED is in an early stage but presents symptoms of financial distress typical of a start-up struggling with liquidity and capital adequacy:

• Liquidity Squeeze: The company holds only £1 in current assets against £312 in liabilities, indicating it cannot meet short-term obligations without additional cash inflows or financing. This is akin to a patient who has dangerously low blood pressure—urgent intervention needed to stabilize.
• Negative Equity: The net liabilities of £610 mean the company’s debts exceed its assets, similar to an organism with a nutrient deficiency that has started to consume its reserves. This could reflect initial startup losses or expenses exceeding initial capital.
• Reliance on Director Capital: With a single director controlling all shares, financial decisions and capital injections depend heavily on this individual’s capacity and willingness to support the business.

Given the company is newly incorporated and likely in a pre-revenue or early-revenue phase, some negative net assets are not uncommon. However, the scale of negative working capital is a concerning symptom that needs addressing to avoid insolvency risks.

---

4. Recommendations

To improve financial wellness and move toward a healthier financial state, the company should consider:

1. Inject Additional Capital or Secure Financing

   • Immediate infusion of cash or credit facilities to shore up working capital, improve liquidity, and cover current liabilities.
   • Explore director loans, bank overdrafts, or equity investment.

2. Enhance Revenue Generation and Cash Flow

   • Accelerate business development to generate consistent cash inflows.
   • Tighten credit control to reduce receivables period if applicable.

3. Cost Control Measures

   • Review all expenses and defer non-essential costs to preserve cash.
   • Consider lean operational approaches to minimize cash burn.

4. Financial Monitoring and Forecasting

   • Implement cash flow forecasting to anticipate liquidity issues early and plan accordingly.
   • Regularly update financial projections and review them against actuals.

5. Seek Professional Advice

   • Engage with a financial advisor or accountant for tailored guidance on restructuring finances and improving accounting practices.

---

Executive Summary

A2B ANALYTICS LIMITED, a newly formed micro-entity, currently exhibits weak financial health with very limited liquid assets, negative working capital, and negative net equity. These symptoms indicate liquidity challenges and capital insufficiency typical of early-stage startups but require urgent attention to avoid solvency risks. Immediate actions to improve cash flow, secure additional financing, and control costs will be critical to stabilizing and strengthening the company’s financial condition.