A3 CONTRACTS (UK) LIMITED

Executive Summary

A3 CONTRACTS (UK) LIMITED is currently in a dormant state with minimal financial activity and a net asset base reflecting initial share capital only. The company exhibits no financial distress but lacks operational trading data to evaluate business performance. Moving forward, activating trading operations and building financial records will be critical to establishing a healthy financial position.

A3 CONTRACTS (UK) LIMITED - Analysis Report

Company Number: 14722142

Analysis Date: 2025-07-20 18:57 UTC

Financial Health Assessment of A3 CONTRACTS (UK) LIMITED

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1. Financial Health Score: Grade D

Explanation:
This company is newly incorporated (March 2023) and has filed dormant accounts for the first financial year ending March 2024. A dormant status indicates no significant financial activity during the period. While this avoids financial distress, it also means there is no operational trading or revenue generation to assess. The minimal net assets (£100) reflect solely the initial share capital and cash balance. Given the lack of active trading and financial data, the company’s financial health is currently neutral but unproven, thus earning a low grade. This score reflects a business in a state of financial "hibernation" rather than active health or distress.

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2. Key Vital Signs

Metric	Value	Interpretation
Status	Active	Company is operational but dormant in activity
Account Category	Dormant	No trading, no income/expenses during period
Net Assets	£100	Minimal capital, only initial share capital present
Cash at Bank	£100	Healthy cash balance relative to activity (minimal)
Shareholders’ Funds	£100	Equity equals share capital, no retained earnings
Director	Kenneth McEwen	Single controlling director and 100% owner
Filing Compliance	Up to date	No overdue accounts or returns, no penalties
SIC Code	43390	Building completion and finishing (industry)

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3. Diagnosis: What the Financial Data Reveals

The company is currently in a dormant state, which means it has not yet embarked on active trading or business operations. The financial "vital signs" indicate no revenues, expenses, or liabilities beyond the initial share capital of £100. This is akin to a patient who has just been admitted but not yet started treatment — the baseline health parameters are stable but lack any indication of operational strength or weaknesses.

The absence of trading activity means there are no symptoms of financial distress such as cash flow problems, debt burdens, or losses. However, it also means there is no evidence of growth, profitability, or operational momentum.

The sole director and 100% owner, Mr Kenneth McEwen, holds full control, implying clear governance but also concentration risk.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Initiate Trading and Revenue Generation:
  To move from dormancy to active business health, the company should begin trading activities and generate revenues. This will provide vital signs such as cash flow, profit margins, and working capital to assess operational health.

• Maintain Financial Controls and Record-Keeping:
  Even in early stages, establish robust financial record systems to track expenses, assets, liabilities, and cash flow. Good record-keeping is like monitoring vital signs regularly.

• Plan for Funding and Capital Needs:
  With only £100 in capital, consider whether additional funding (equity or loans) may be necessary to support initial operations. Adequate capital is key to a healthy financial pulse.

• Prepare for Future Filings:
  Ensure timely preparation and submission of full statutory accounts once trading begins. Compliance prevents penalties and supports transparent financial diagnosis.

• Consider Risk Management and Governance:
  While the single director structure simplifies decision-making, it also concentrates risk. Consider advisory support or additional directors for oversight as the company grows.

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