A&E PRIVATE LIMITED

Executive Summary

A&E PRIVATE LIMITED is a newly incorporated small private company with a solid financial foundation characterized by positive net assets and healthy liquidity. While current operations are limited in scale and cash reserves modest, the company shows no signs of financial distress. Focused growth strategies and increased funding will be key to enhancing its financial health and operational sustainability moving forward.

A&E PRIVATE LIMITED - Analysis Report

Company Number: 14722913

Analysis Date: 2025-07-29 13:35 UTC

Financial Health Assessment for A&E PRIVATE LIMITED

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1. Financial Health Score: B

Explanation:
A&E PRIVATE LIMITED demonstrates a solid financial foundation for a newly incorporated small private company. The company has a positive net asset position and healthy net current assets, indicating good short-term liquidity. However, the overall scale is very modest, reflecting a very early stage of business development with limited operating history and minimal cash reserves. There is room to improve operational scale and financial robustness as it grows.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at bank and in hand	2,670	Positive cash balance indicates some liquidity; however, the amount is small, highlighting limited cash runway.
Current Liabilities	147	Very low current liabilities relative to assets; manageable short-term obligations.
Net Current Assets	2,523	Positive working capital ("healthy cash flow") signals ability to cover short-term debts comfortably.
Net Assets (Equity)	2,523	Positive equity indicates the company is solvent and not overleveraged.
Share Capital	1	Nominal share capital typical for small start-ups; owner-funded initially.
Loans from Directors	(1,195)	Negative loan balance implies director has lent money to the company, supporting liquidity.
Average Employees	0	No staff employed yet; possibly founder-operated or outsourcing work.

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3. Symptoms Analysis and Diagnosis

• Liquidity: The company shows "healthy cash flow" with sufficient net current assets to cover its short-term liabilities. This is a positive sign of operational stability at this early stage.
• Capital Structure: The balance sheet is clean with minimal liabilities and positive net assets. The modest loan from the director indicates personal investment to fund initial activities, a common symptom in start-ups.
• Operating Scale: No employees and very limited cash suggest the company is in the incubation phase, not yet scaling operations or generating significant revenue.
• Financial Reporting: Accounts are unaudited but prepared under relevant small company standards with no material departures. This is typical and acceptable for a micro company.
• Industry Exposure: The company operates across diverse sectors (cleaning services, private security, real estate management, licensed restaurants), which could either reflect a diversified business model or multiple service offerings under one umbrella. This requires monitoring for operational focus.

Diagnosis:
A&E PRIVATE LIMITED is financially stable but at a nascent stage with modest capital and resources. It currently shows no distress symptoms. The financial "vital signs" indicate sound short-term liquidity and solvency, but the company needs to develop operational scale and revenue streams to improve long-term viability.

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4. Recommendations to Improve Financial Wellness

• Increase Cash Reserves: Seek additional funding (equity or debt) to build cash reserves, enhancing liquidity and supporting operational expansion.
• Develop Revenue Streams: Prioritize commercialization of services to generate consistent cash inflows and improve profit retention.
• Operational Scaling: Consider hiring or contracting staff to support growth, moving beyond founder-only operations.
• Focus Business Activities: Clarify core business areas to avoid dilution of resources and optimize management attention.
• Financial Monitoring: Implement routine financial reviews and cash flow forecasting to anticipate liquidity needs and avoid surprises.
• Prepare for Audit Readiness: As the company grows, plan for future audit requirements to maintain compliance and investor confidence.
• Director Loans Management: Formalize terms for director loans and consider repayment schedules or conversion to equity to strengthen balance sheet transparency.

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