ABEX DESIGN LTD

Executive Summary

ABEX DESIGN LTD shows a strong and improving liquidity position with growing net assets, indicating good financial health for a micro-entity. The company is financially stable with no signs of distress, though limited scale and disclosures suggest careful monitoring and strategic growth planning are advisable to maintain this healthy trajectory.

ABEX DESIGN LTD - Analysis Report

Company Number: 13123552

Analysis Date: 2025-07-20 11:02 UTC

Financial Health Assessment Report for ABEX DESIGN LTD

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1. Financial Health Score: B

Explanation:
ABEX DESIGN LTD demonstrates solid financial improvement and stability over recent years, with steadily increasing net current assets and shareholders' funds. While the company has no employees and operates on a micro-entity scale, the positive working capital and growth in net assets indicate a healthy financial position, though the limited scale and absence of revenue/profit data restrain a higher grade.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Current Assets	35,214	20,586	Healthy liquidity, increased cash or receivables availability
Current Liabilities	10,877	8,609	Manageable short-term obligations
Net Current Assets	24,337	11,977	Strong positive working capital ("healthy cash flow cushion")
Net Assets (Shareholders' Funds)	24,337	11,977	Growing equity base, indicating retained profits or capital injections
Share Capital	100	100	Minimal paid-in capital, typical for micro-entity structures

Interpretation of Vital Signs:

• The company's liquidity position ("vital signs") is robust, with net current assets more than doubling from 2022 to 2023, reflecting improved ability to cover short-term debts and operational expenses.
• The steady increase in net assets suggests retained earnings or increased reserves, a positive symptom of financial health and operational success.
• Absence of employees suggests the company likely operates with subcontractors or owner-led services, which can reduce fixed overhead costs but may limit scale.
• The balance sheet shows no indication of distress such as negative net assets or high liabilities, which would be symptoms of financial strain.

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3. Diagnosis

ABEX DESIGN LTD presents as a financially stable micro-entity with a strong liquidity position and growing equity base. The company exhibits no symptoms of financial distress such as excessive liabilities, shrinking current assets, or negative net assets. The steady growth in net current assets and shareholders' funds is a positive sign of operational success or effective capital management.

However, the small scale of operations (no employees, minimal share capital) limits the company's resource base and may constrain growth potential. The company’s micro-entity accounting basis means limited financial disclosures, restricting deeper analysis of profitability or cash flow trends.

Overall, the company’s financial health is sound, akin to a patient with stable vital signs but requiring ongoing monitoring to ensure sustained growth and avoid liquidity shocks.

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4. Recommendations

• Monitor Cash Flow Regularly: Maintain the healthy liquidity position by closely managing receivables and payables. Even in a micro-entity, cash flow is the "heartbeat" of the business.
• Consider Scaling Thoughtfully: If growth is a goal, explore opportunities to increase staff or subcontractors to expand operational capacity while keeping overheads controlled.
• Maintain Compliance and Filing Discipline: Continue timely filing of accounts and confirmation statements to avoid penalties and preserve corporate reputation.
• Build Capital Reserves: Consider reinvesting profits or increasing share capital to strengthen equity, enhancing resilience against unforeseen expenses.
• Track Profitability Metrics: Although current data is limited, developing internal metrics on income and expenses can help diagnose underlying business health beyond balance sheet snapshots.
• Risk Management: As a consulting entity, ensure appropriate insurance and contractual protections to mitigate operational risks.

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