AA LOGISTIC SOLUTION LTD

Executive Summary

AA Logistic Solution Ltd exhibits a robust and stable financial condition with positive net assets and strong working capital, indicative of healthy liquidity and effective financial management for a micro-entity. The company’s lean structure and consistent net asset growth suggest solid foundational health, though limited scale may constrain rapid growth. Maintaining liquidity, exploring cautious expansion, and preparing for operational risks will support continued financial wellness.

AA LOGISTIC SOLUTION LTD - Analysis Report

Company Number: 13667364

Analysis Date: 2025-07-20 11:34 UTC

Financial Health Assessment for AA LOGISTIC SOLUTION LTD

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1. Financial Health Score: A-

Explanation:
AA Logistic Solution Ltd demonstrates strong financial stability at the micro-entity level. The company maintains positive net assets and healthy working capital with a consistent increase in net current assets and shareholders’ funds over the past years. There are no signs of financial distress or liquidity concerns. The absence of employees suggests a lean operation, which may limit some operational risks. Overall, the company’s financial “vital signs” are robust for its scale, warranting a high grade, though the small size means growth potential and diversification remain limited.

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2. Key Vital Signs

• Net Current Assets (Working Capital): £19,984 (2024) up from £16,530 (2023)
  Interpretation: Indicates a strong short-term liquidity position. The company has almost £20k more in current assets than short-term liabilities, a sign of “healthy cash flow” and ability to meet immediate obligations without stress.

• Net Assets / Shareholders’ Funds: £19,984 (2024) increased from £16,530 (2023)
  Interpretation: Positive and growing equity suggests accumulated retained profits or capital injections, a “healthy balance sheet” foundation.

• Current Assets: £21,318 (2024)
  Interpretation: Includes cash, receivables, or stock. Considering the company has no employees, it’s likely cash and receivables dominate, indicating good operational control and cash management.

• Current Liabilities: £1,334 (2024)
  Interpretation: Low short-term debts relative to assets reduce financial risk and pressure on liquidity.

• Company Size & Category: Micro-entity, Private Limited Company
  Interpretation: Limited filing requirements and a small scale of operations; financial indicators must be viewed within this context.

• Operational Activity: No employees reported; likely owner-managed
  Interpretation: Reduced payroll burden but also possibly limited capacity for growth or operational complexity.

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3. Diagnosis

The financial “symptoms” of AA Logistic Solution Ltd point to a company in good health. The net current assets and net assets show consistent improvement year-over-year, akin to a patient steadily gaining strength. Liquidity is sound, with current assets significantly exceeding current liabilities, indicating the company can cover its short-term obligations comfortably. The absence of any overdrafts or overdue filings suggests no immediate financial “distress signals.”

The company being a micro-entity with no employees indicates a lean business model, possibly owner-operated logistics support activities. While this reduces fixed costs and financial strain, it may also limit scalability or resilience to market shocks. The positive net asset growth is a good sign, indicating either retained earnings or capital contributions, which improve the company’s financial “immune system.”

No audit requirement and small size mean less detailed public financial information, but the available data shows no red flags. The company’s sole director and 100% shareholder control centralizes decision-making, which can be both a strength (agility) and a risk (dependency on one individual).

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4. Recommendations

• Maintain Healthy Liquidity: Continue managing working capital prudently to ensure the company can meet obligations without strain. Regularly review cash flows especially if business activity grows.

• Consider Growth Opportunities: Explore hiring or outsourcing to build capacity if business volume increases. Expanding operations cautiously can improve resilience.

• Build Financial Buffers: Consider setting aside reserves or reinvesting profits to strengthen the balance sheet further, preparing for any unforeseen downturns.

• Monitor Market & Operational Risks: Given the small scale, monitor industry trends in transportation support activities to adapt business strategy proactively.

• Ensure Compliance: Keep up-to-date with Companies House filings and any regulatory requirements to avoid penalties and maintain good standing.

• Plan for Succession or Diversification: As the company depends heavily on one director/shareholder, developing a succession or diversification plan could safeguard long-term sustainability.

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