ACADEMY OF LIFE SUPPORT LTD

Executive Summary

Academy Of Life Support Ltd has demonstrated a significant turnaround in financial health over the past year, moving from negative working capital to a strong liquidity position and growing shareholders’ funds. The company shows stable governance with no overdue filings and a solid equity base. To sustain this positive trajectory, management should maintain disciplined cash flow practices and monitor liabilities closely.

ACADEMY OF LIFE SUPPORT LTD - Analysis Report

Company Number: 13246043

Analysis Date: 2025-07-20 17:47 UTC

Financial Health Assessment for ACADEMY OF LIFE SUPPORT LTD

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1. Financial Health Score: B

Explanation:
The company exhibits solid improvement in its financial condition over the last year, showing positive net current assets and increasing shareholders' funds. While it is still a relatively young business with modest capital and limited fixed assets, the overall balance sheet indicates a healthy liquidity position and prudent management of liabilities. The absence of overdue filings and the maintenance of active status further support a stable operational state. However, the company should continue to monitor working capital and asset utilization to sustain growth and avoid potential liquidity strains.

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2. Key Vital Signs

Metric	31 Mar 2024	31 Mar 2023	Interpretation
Cash at Bank	£42,997	£10,425	Strong cash inflow observed, a "healthy cash flow pulse" signifying better liquidity management.
Current Liabilities	£33,996	£19,829	Increased short-term obligations, but still comfortably covered by cash and current assets.
Net Current Assets	£9,001	(£9,404)	Shift from negative to positive working capital, indicating improved operational liquidity.
Total Assets less CL	£28,175	£14,564	Growth in net assets, reflecting asset accumulation and equity strengthening over the year.
Shareholders’ Funds	£28,175	£14,564	Increase in equity base, demonstrating retained earnings growth and financial resilience.
Fixed Assets (Net Book Value)	£19,174	£23,968	Slight decrease, possibly due to depreciation exceeding capital expenditure; asset base stable.
Share Capital	£100	£100	Nominal share capital typical of small private companies; equity built mainly via retained profits.

Interpretation of Metrics:

• The substantial increase in cash is akin to a patient whose vital signs have stabilized after a period of stress.
• Positive net current assets indicate the company can comfortably meet short-term obligations, a healthy sign of liquidity.
• Increasing shareholders’ funds resemble improved "organ function" showing retained earnings and capital accumulation.
• Fixed assets have decreased slightly, which may reflect normal depreciation, not necessarily a concern but worth monitoring.

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3. Diagnosis

Overall Financial Condition:
Academy Of Life Support Ltd shows clear signs of recovery and financial strengthening. The company has transitioned from negative working capital last year, a symptom of liquidity distress, to positive net current assets and a robust cash position. This improvement suggests effective cash flow management and operational progress. The balance sheet portrays a company with a sound capital base relative to its liabilities, indicating financial stability.

The business is still in its early lifecycle (incorporated 2021), so some fluctuations in asset levels and cash flow are natural. The directors have maintained timely statutory compliance (no overdue accounts or confirmation statements), an indicator of good governance. The company operates in a niche sector (human health and educational support), which might require careful cash flow monitoring due to potential seasonality or project-based income.

No audited accounts are required due to its small company status, but the financial statements comply with relevant reporting standards, providing reliable snapshots of financial health.

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4. Recommendations

To maintain and enhance financial wellness, consider the following steps:

• Maintain Healthy Cash Flow: Continue focusing on cash collection processes and managing payables to preserve liquidity. A "healthy cash flow rhythm" is essential for smooth operations and to fund growth initiatives.

• Monitor Working Capital: Keep a close eye on current liabilities growth. While current assets cover liabilities now, sudden increases in short-term debts could cause liquidity "symptoms" such as delayed payments or overdrafts.

• Asset Management: Review the fixed asset base to ensure it aligns with operational needs. Consider strategic reinvestment or disposal of underutilized assets to optimize the balance sheet "organ function."

• Profitability Focus: Since retained earnings are the primary source of equity growth, enhancing profitability through cost control and revenue expansion will solidify the financial foundation.

• Risk Management: As a company in health and education support, anticipate regulatory changes or funding risks. Implement contingency plans as necessary.

• Governance and Compliance: Continue timely filings and transparent reporting to avoid penalties and preserve stakeholder confidence.

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