A&E PR & EVENT COMPANY LIMITED

Executive Summary

A&E PR & Event Company Limited is a young, small-scale business with minimal equity and a liquidity imbalance indicated by negative working capital. While the company is not currently insolvent, it exhibits early symptoms of financial strain typical for start-ups in the service sector. Focused actions on liquidity improvement, cash reserves, and operational growth are essential to strengthen financial health and ensure long-term viability.

A&E PR & EVENT COMPANY LIMITED - Analysis Report

Company Number: 13951540

Analysis Date: 2025-07-20 15:11 UTC

Financial Health Assessment: A&E PR & Event Company Limited

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1. Financial Health Score: C

Explanation:
The company is in a fragile state of financial health. While it maintains positive net assets and shareholders’ funds, it shows symptoms of working capital strain, reflected in negative net current assets. The company's infancy (incorporated 2022) and lack of employees suggest it is still in an early developmental phase. Overall, this grade reflects caution due to limited liquidity and early stage profitability.

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2. Key Vital Signs

Vital Sign	Value (£)	Interpretation
Net Assets	193	A very small buffer of assets over liabilities; positive but minimal equity base.
Net Current Assets (Working Capital)	-1,007	Negative value indicates current liabilities exceed current assets—there is a liquidity strain.
Current Liabilities	1,007	Small but payable debts due within one year, including trade creditors and taxes.
Fixed Assets (Tangible)	1,200	Investment in equipment, depreciated over time; small asset base typical for start-ups.
Shareholders’ Funds	193	Mirrors net assets; reflects owner's equity invested plus retained earnings.
Average Number of Employees	0	No staff employed, likely reliant on directors or contractors.

Interpretation of Vital Signs:
The "healthy cash flow" sign is missing here — the negative working capital suggests the company may struggle to meet short-term obligations without additional cash inflows or financing. The positive but minimal net assets show the business has a thin equity cushion, which might be a "symptom of distress" if losses continue. The small fixed asset base is typical for a service company in PR and event management, which relies more on intellectual capital than physical assets.

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3. Diagnosis

The financial snapshot reveals a company in its infancy navigating early operational challenges. The negative net current assets suggest a liquidity imbalance — the business owes more in the short term than it holds in liquid assets or receivables. This is a classic "symptom of distress" in the working capital cycle.

However, the company maintains positive net assets, indicating that after accounting for all liabilities, it still holds some equity value. The modest tangible fixed assets indicate some investment in necessary equipment, but the lack of employees points to limited operational scale or outsourcing.

The change in directors and significant control concentrated in one individual reflects a recent governance transition, common in new enterprises. The company operates in a competitive service sector (conference organising, PR activities), which often involves fluctuating cash flows and requires strong client relationships for sustainable revenue.

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4. Recommendations

To improve financial wellness and build resilience, the company should consider the following actions:

• Improve Liquidity Management:
  Address the negative working capital by negotiating better payment terms with suppliers, accelerating receivables, or securing short-term financing to ensure smooth cash flow and avoid liquidity crises.

• Build Cash Reserves:
  Aim to accumulate a cash buffer to cover at least 3 months of operating expenses, which will act as a financial "immune system" against unexpected downturns.

• Operational Scale-Up:
  Evaluate the business model to hire or contract key staff to drive revenue growth, considering that zero employees may limit capacity and scalability.

• Financial Monitoring:
  Implement regular cash flow forecasting and budgeting to detect early symptoms of financial distress and allow timely corrective action.

• Governance Stability:
  Ensure clear roles and responsibilities among directors and PSC to maintain consistent strategic direction and compliance.

• Revenue Diversification:
  Explore additional client segments or complementary services to stabilize income streams and reduce dependency on few contracts.

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