ABP (ACCOUNTS BOOKKEEPING PAYROLL) LIMITED

Executive Summary

ABP (Accounts Bookkeeping Payroll) Limited exhibits solid financial health for a micro-entity with strong liquidity and growing equity. The company operates with a lean structure and no employees, reflecting efficient management but limited scale. Continued focus on accurate financial reporting and strategic growth will support its positive outlook.

ABP (ACCOUNTS BOOKKEEPING PAYROLL) LIMITED - Analysis Report

Company Number: 13576873

Analysis Date: 2025-07-29 20:52 UTC

Financial Health Assessment Report for ABP (ACCOUNTS BOOKKEEPING PAYROLL) LIMITED

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1. Financial Health Score: B

Explanation:
ABP Ltd demonstrates a solid foundation typical of a micro-entity in its early years, with positive net current assets and steady growth in shareholders' funds. The company's financial "vital signs" indicate healthy liquidity and equity buildup, though the absence of employees and limited asset base suggest a very lean operation. The score B reflects generally good financial health with room for growth and some caution given its size and early stage.

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2. Key Vital Signs

Metric	2024	2023	Interpretation
Current Assets	£4,137	£3,555	Cash and receivables available to meet short-term obligations; increasing is positive.
Current Liabilities	(£2,807)	£330	Negative current liabilities figure in 2024 likely a reporting presentation (creditor balance); overall manageable.
Net Current Assets (Working Capital)	£6,944	£3,225	Strong working capital indicates liquidity strength; able to cover short-term debts comfortably.
Shareholders' Funds (Equity)	£6,944	£3,225	Growing retained equity signals reinvested earnings or capital injections, building company net worth.
Employees	Nil	Nil	No staff; minimal overhead but also limited operational capacity.
Account Category	Micro	Micro	Small scale business, subject to simplified reporting, indicating early growth phase.

Interpretation:

• The company shows "healthy cash flow" signs through rising current assets and net current assets, essential for day-to-day operations.
• The equity growth from £3,225 to £6,944 in one year is a "positive pulse," suggesting retained profits or fresh capital.
• The lack of employees is a "symptom of a lean structure," possibly owner-operated or outsourcing tasks.
• The negative figure under current liabilities in 2024 is likely an accounting presentation issue (creditors shown as negative may actually be a payable balance). This does not appear to indicate distress but should be clarified.

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3. Diagnosis

ABP Ltd is financially stable with no immediate signs of distress. The company's liquidity position is strong — it has sufficient short-term assets to cover liabilities, reflecting a "healthy cash flow system." The growing shareholders' funds indicate prudent financial management and capital retention.

However, as a micro-entity with no employees and limited fixed assets (£510 reported in 2021), the business may be operating on a tight margin with constrained operational scale. This lean setup is typical for startup or owner-managed firms focusing on service provision such as bookkeeping and payroll, which require minimal physical assets.

No audit was required or performed, consistent with micro-entity status, so financials rely on management reporting. This places importance on accurate bookkeeping and financial oversight by the director.

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4. Recommendations

• Clarify Current Liabilities Presentation: The unusual negative figure in 2024 should be reviewed to ensure accuracy in creditor reporting and avoid misinterpretation by stakeholders or lenders.

• Build Cash Reserves: Continue to grow current assets as a buffer against unforeseen expenses or market downturns. A "healthy cash reserve" acts like an immune system for the business.

• Consider Operational Expansion: Explore hiring or outsourcing to increase capacity if demand grows, balancing cost control with growth potential.

• Maintain Robust Financial Controls: Even without audit requirements, implement internal checks and reconciliations to keep financial "vital signs" accurate and prevent future symptoms of distress.

• Plan for Growth Capital: As the company matures, consider strategies to increase fixed assets or invest in technology/software to enhance service delivery and competitive positioning.

• Regular Financial Reviews: Schedule periodic financial health assessments, treating financial statements as a "health check-up," enabling early detection of issues.

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