ADVANCED PROTOTYPING AND ENGINEERING EXCELLENCE LTD

Executive Summary

Advanced Prototyping and Engineering Excellence Ltd is facing significant liquidity and solvency challenges as reflected by negative net assets and working capital deficits. Immediate strategic actions including cash flow management and capital infusion are recommended to stabilize and improve the company's financial condition.

ADVANCED PROTOTYPING AND ENGINEERING EXCELLENCE LTD - Analysis Report

Company Number: 12537320

Analysis Date: 2025-07-20 15:18 UTC

Financial Health Assessment for Advanced Prototyping and Engineering Excellence Ltd

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1. Financial Health Score: D

Explanation:
The company currently exhibits significant financial distress, indicated by negative net assets and net current liabilities. A "D" grade reflects critical warning signs in liquidity and solvency that require immediate attention to avoid further deterioration or risk of insolvency.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	522	Minimal long-term asset base; typical for micro company.
Current Assets	3,042	Limited short-term resources to cover liabilities.
Current Liabilities	5,883	Obligations due within one year exceed current assets by £2,841.
Net Current Assets (Working Capital)	-2,841	Negative working capital; cash flow strain likely.
Net Assets (Shareholders Funds)	-2,619	Company is technically insolvent on a balance sheet basis.
Employee Count	Nil (2024)	No employees during the period, indicating limited operational activity.
Share Capital	1.00	Nominal share capital, common for start-ups or micro entities.

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3. Diagnosis: Symptoms Analysis

• Liquidity Crisis: The company’s current liabilities have nearly tripled from £1,855 in 2023 to £5,883 in 2024, while current assets remained flat at £3,042. This large jump in short-term obligations without corresponding asset growth signals a "symptom of distress" in cash flow management.

• Negative Net Assets: The company’s net assets shifted from a positive £1,501 in 2023 to a negative £2,619 in 2024, reflecting accumulated losses or increased liabilities. This "unhealthy balance sheet" suggests erosion of shareholder equity and potential solvency issues.

• Operational Activity: The company reported zero employees in 2024, down from one in 2023, indicating possible operational scaling down or inactivity. This "symptom of stagnation" can further impact revenue generation and recovery prospects.

• Accounting and Audit: The company is exempt from audit under micro-entity provisions, which is typical but means less external scrutiny.

• Ownership and Control: Full ownership and control by a single director could limit access to diverse expertise or capital, increasing risk if the business faces hardships.

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4. Prognosis: Future Financial Outlook

If current trends persist, the company faces escalating liquidity pressures and mounting liabilities. Without corrective action, it risks insolvency or forced liquidation. However, as a micro entity with a small asset base and low operational complexity, prompt strategic interventions could stabilize finances.

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5. Recommendations: Prescription for Financial Wellness

• Improve Cash Flow Management: Prioritize negotiating extended payment terms with creditors or securing short-term financing to cover immediate liabilities. Think of this as stabilizing the patient’s vital signs.

• Review and Reduce Costs: Assess all overheads and non-essential expenditures to conserve cash, including considering resuming minimal operations if viable.

• Explore Capital Injection: Consider new equity investment or director loans to recapitalize the business and restore positive net assets.

• Operational Restructuring: Investigate business model viability and potential revenue streams to revive activity, akin to initiating treatment to improve systemic health.

• Regular Financial Monitoring: Implement monthly cash flow forecasts and financial reviews to detect early warning signs and adjust strategy rapidly.

• Seek Professional Advice: Engage financial advisors or turnaround specialists to formulate a recovery plan, much like consulting a specialist for complex health issues.

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Summary

Advanced Prototyping and Engineering Excellence Ltd is currently exhibiting critical symptoms of financial distress, with negative net assets and insufficient working capital signaling liquidity challenges. Immediate actions focusing on cash flow improvement, cost control, and recapitalization are essential to prevent further deterioration and restore financial health.