ACQUAH & CO LTD

Executive Summary

ACQUAH & CO LTD is in a financially precarious position with negative net assets and insufficient current assets to cover liabilities, indicating liquidity distress. Immediate action to inject capital, reduce costs, and enhance operational activity is crucial to improve financial health and ensure sustainability.

ACQUAH & CO LTD - Analysis Report

Company Number: 13530865

Analysis Date: 2025-07-29 20:54 UTC

Financial Health Assessment for ACQUAH & CO LTD as of 31 July 2024

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with significant negative net current assets (working capital deficit) and net liabilities, which signals a "symptom of distress" in its financial health. While the company remains active and solvent on paper, the imbalance between current liabilities and assets is a red flag. The absence of employees and limited operating activity further suggest early-stage or dormant operational status with limited cash inflows.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	212	Extremely low current assets indicate minimal liquid resources available to cover short-term debts.
Current Liabilities	29,001	High current liabilities relative to assets indicate a liquidity crunch and short-term financial strain.
Net Current Assets (Working Capital)	-28,789	Negative working capital is a critical symptom of liquidity problems; the company cannot cover its short-term obligations.
Net Assets (Total Equity)	-28,789	Negative net assets reflect that liabilities exceed total assets, a potential insolvency warning sign.
Employee Count	0	No employees, suggesting minimal business operations or early startup phase.
Company Status	Active	Still operating legally but financial distress symptoms are evident.

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3. Diagnosis

ACQUAH & CO LTD exhibits clear symptoms of financial distress, primarily due to a persistent and growing deficit in net current assets and negative equity. Despite being a micro-entity and having no employees, the company carries significant short-term liabilities that vastly exceed its liquid assets. This imbalance is akin to a patient exhibiting "low blood pressure"—an inability to sustain normal operational health without intervention.

The company’s financial "vital signs" suggest it may be relying heavily on external financing or shareholder funds to meet obligations, as indicated by the negative net assets worsening from £14,889 (2021) to -£28,789 (2024). The lack of audit and simplified micro-entity accounts limit insight into profitability and cash flow trends, but the available data points to liquidity stress and potential solvency concerns.

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4. Recommendations

1. Improve Liquidity Management:

   • Inject additional working capital through equity or short-term financing to cover immediate liabilities.
   • Tighten control over payables and accelerate receivables collection if applicable.

2. Cost Rationalization:

   • Given zero employees and minimal assets, review all expenses to eliminate non-essential costs.
   • Consider restructuring debt to ease short-term pressure.

3. Business Activity Review:

   • Clarify and boost operational activities to generate revenue and improve cash inflow.
   • Explore strategic partnerships or consultancy engagements aligned with SIC codes (education support, management consultancy).

4. Financial Monitoring and Reporting:

   • Implement regular financial health checks beyond statutory filings to monitor liquidity and solvency.
   • Prepare for potential audit or detailed review if company grows beyond micro thresholds or if external financing is sought.

5. Seek Professional Advice:

   • Engage financial advisors or insolvency practitioners to assess restructuring or turnaround options early to avoid escalation.

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Executive Summary

ACQUAH & CO LTD currently faces significant financial stress, demonstrated by a liquidity shortfall and negative net assets. The company’s financial condition is fragile, requiring urgent liquidity improvement and operational reassessment to avoid insolvency risks. Proactive cost management and cash flow enhancement are essential to restore financial health.