Company Number: 13178717

Analysis Date: 2025-07-29 14:06 UTC

Financial Health Assessment Report for ACRE BIERTON LTD

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1. Financial Health Score: D

Explanation:
ACRE BIERTON LTD demonstrates persistent negative net current assets and net liabilities over the past four years, indicating ongoing working capital deficiency. The company’s financial statements classify it as dormant with minimal transactions and no employees, and it has a very low share capital of £1.00. These symptoms suggest financial distress and limited operational activity, resulting in a low financial health grading.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Current Assets	4,600	Very low; minimal liquid resources
Current Liabilities	4,671	Slightly exceeds current assets, indicating short-term liquidity pressure
Net Current Assets	-71	Negative working capital; symptom of cash flow tightness
Net Assets (Shareholders Funds)	-71	Negative equity; company owes more than it owns
Share Capital	1.00	Minimal invested capital; limited financial cushion
Employees	0	No staff; points to dormancy or inactivity
Company Status	Active	Legally operational but dormant financially
Industry SIC Codes	68310, 68100	Real estate activities; typically capital intensive sector

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3. Diagnosis

• Dormant Status with Negative Net Assets: The company is registered as dormant, confirmed by the accounts indicating exemption from audit and no employees. Despite this status, the company has a recurring negative net asset position, a warning sign of financial strain.
• Working Capital Deficiency: Negative net current assets (liabilities exceeding current assets) over multiple years suggest the company lacks sufficient short-term resources to cover its immediate debts.
• Minimal Capital Investment: The nominal share capital of £1.00 and negative shareholders' funds reflect an extremely fragile capital base, limiting the company’s ability to absorb losses or invest.
• No Operating Activity: The absence of employees and declaration as dormant indicate no active trading or commercial operations, which explains the lack of revenue and cash flow.
• Control and Ownership: Fully controlled by Acre London Projects Ltd, which holds 75-100% shares and voting rights, implying decisions and financial support (if any) come from the parent entity.

Summary Medical Analogy:
The company is in a state similar to a patient in remission but critically undernourished—dormant but with persistent financial anemia (negative net assets and working capital deficiency), showing symptoms of distress though not currently incurring active operational strain.

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4. Recommendations

• Capital Injection: Consider a capital increase or shareholder loan from the parent company to restore positive equity and improve working capital, akin to giving the patient necessary nutrients.
• Review Dormant Status: Reassess the company’s purpose and potential for reactivation or formal closure to prevent the negative equity from worsening.
• Monitor Liabilities: Ensure that short-term liabilities are managed carefully to avoid escalation of financial distress.
• Consolidate Group Structure: As the company is fully controlled by Acre London Projects Ltd, consider consolidation or simplification of group entities to reduce administrative overhead and financial inefficiencies.
• Prepare for Operational Restart or Closure: If reactivation is planned, prepare a robust business plan with cash flow forecasting; if not, explore formal liquidation or strike-off to prevent further financial deterioration.
• Compliance Vigilance: Maintain timely filing of accounts and confirmation statements to avoid penalties and reputational risk.

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