Company Number: 12797950

Analysis Date: 2025-07-20 16:48 UTC

Financial Health Assessment: ABLE AND BAKER LTD (as at 31 August 2021)

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1. Financial Health Score: B-

Explanation:
ABLE AND BAKER LTD shows a generally sound financial footing for a micro-entity start-up with positive net current assets and net assets. However, the small scale of operations, overdue accounts filing, and minimal share capital place some constraints on the overall financial robustness. The score reflects a company that is financially stable but requires improved compliance discipline and scaling for stronger health.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£5,280	Indicates the company has some liquid resources and receivables available to meet short-term obligations.
Current Liabilities	£2,663	Short-term debts are relatively low, manageable compared to current assets.
Net Current Assets (Working Capital)	£2,617	Positive working capital shows the company can cover its immediate debts, a "healthy cash flow" indicator for day-to-day operations.
Net Assets (Equity)	£2,617	Positive net assets signify the company’s assets exceed liabilities; a sign of financial solidity for a micro business.
Share Capital	£1.00	Minimal initial capital, typical for micro-entities, but limits financial buffer.
Employees	1	Very small operational scale, indicating limited human resource investment and likely low overheads.
Account Filing Status	Overdue	Overdue accounts filing is a symptom of administrative neglect which can lead to regulatory penalties and reduce stakeholder confidence.

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3. Diagnosis

Underlying Business Health:

• The company operates within the advertising sector (SIC 73110), a competitive and service-driven industry, well-suited for micro-entities relying on client projects and contracts.
• Financially, the company shows symptoms of stability with positive net current assets and net assets, suggesting the business is solvent and has a buffer to withstand immediate financial obligations.
• The small scale of operations (single employee, minimal share capital) denotes an early-stage or boutique operation with limited financial complexity.
• The overdue accounts filing is a warning sign—although the financials suggest no immediate distress, failure to comply with statutory deadlines can lead to penalties, increased scrutiny, and potential damage to creditworthiness.
• The company’s financial health is akin to a patient with a stable heart rate but who has neglected regular check-ups—currently stable but at risk if compliance issues persist.

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4. Recommendations

To improve the financial wellness and overall health of ABLE AND BAKER LTD, the following steps are advised:

• Immediate Action on Compliance: File overdue annual accounts promptly to avoid penalties and restore confidence with creditors, clients, and regulatory bodies. Set reminders or engage a professional to ensure future deadlines are met.
• Build Financial Resilience: Consider increasing share capital or retaining earnings to strengthen the equity base, providing a larger cushion against unforeseen financial shocks.
• Monitor Cash Flow Regularly: Maintain positive working capital vigilantly. Since the company is small, even minor cash flow disruptions can affect operations.
• Expand Operational Capacity: Assess opportunities to scale operations by hiring or subcontracting, improving revenue streams, and diversifying clients to reduce business risk.
• Financial Record Keeping: Adopt robust accounting and record-keeping practices to ensure timely and accurate filings and provide real-time financial insights.
• Risk Management: Given the company’s size, maintain a clear focus on managing credit risk from customers and controlling costs to sustain profitability.

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