A-FRAME AGENCY UK LIMITED

Executive Summary

A-FRAME AGENCY UK LIMITED exhibits strong financial health with significant growth in working capital and net assets, indicating a stable and expanding operation. The company demonstrates good liquidity and solvency, although limited financial transparency due to micro-entity reporting standards suggests room for improved stakeholder insight. With prudent management and enhanced reporting, the company is well positioned for continued financial wellness.

A-FRAME AGENCY UK LIMITED - Analysis Report

Company Number: 13421480

Analysis Date: 2025-07-29 20:16 UTC

Financial Health Assessment for A-FRAME AGENCY UK LIMITED (as at 31 December 2024)

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1. Financial Health Score: B+

Explanation:
The company demonstrates solid financial vitality with strong working capital growth and positive net assets, indicative of a healthy cash flow and well-managed operations. However, the limited size and micro-entity reporting standard, along with no detailed profit and loss disclosure, temper the overall confidence level slightly.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£6,402	Small proportion of long-term assets, typical for a service company.
Current Assets	£1,646,543	Large current asset base, mainly cash or receivables, indicating good liquidity.
Current Liabilities	£1,137,503	Current obligations are sizeable but well covered by current assets.
Net Current Assets (Working Capital)	£509,040	Positive and significantly improved from prior years; signals strong short-term financial health.
Net Assets	£515,442	Solid equity base showing the company’s net worth has grown substantially.
Employee Count	8	Modest but growing workforce, indicating operational expansion.
Share Capital	£100	Minimal capital invested by shareholders; business likely financed via retained earnings or external investment.

Interpretation:

• The Net Current Assets (working capital) is a key vital sign showing the company can comfortably meet its short-term obligations. This reflects a "healthy cash flow" system, reducing liquidity risk.
• The substantial increase in current assets and net assets compared to prior years signals business growth and improved financial stability.
• The company’s status as a micro-entity means it reports under simplified accounting standards (FRS 105), which limits detailed financial disclosures but is typical for small companies.
• No audit requirement and no profit & loss included means we have less visibility on profitability and operational efficiency, a mild "symptom of uncertainty."

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3. Diagnosis

• Underlying Business Health:
  The company shows strong signs of financial health with steadily increasing net assets and working capital. The large jump in current assets and net assets from 2023 to 2024 suggests successful business expansion, possibly increased receivables or cash reserves. The presence of 8 employees indicates growing operational capacity.

• Liquidity and Solvency:
  The company’s liquidity position is robust, with current assets comfortably exceeding current liabilities by over £500,000, indicating no immediate distress. Net assets are positive and growing, supporting long-term solvency.

• Capital Structure:
  Minimal share capital (£100) suggests the business relies on retained earnings or external funding; this is not uncommon for micro-entities but highlights dependence on internal cash flow or parent company support (noted 75-100% ownership by A Frame, LLC in the USA).

• Operational Transparency:
  Lack of profit & loss account disclosure limits insight into profitability and cost management. This is a mild concern but consistent with micro-entity reporting exemptions.

• Control and Governance:
  All directors are American nationals and the controlling entity is a US LLC, which may influence corporate governance and funding sources. The company is active and compliant with filings, indicating good administrative health.

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4. Recommendations

• Increase Financial Transparency:
  Consider voluntarily publishing a profit & loss statement or management accounts to provide stakeholders with clearer insights into profitability and operational efficiency, aiding better financial diagnosis.

• Monitor Working Capital Management:
  While current working capital is strong, maintain close oversight on receivables and payables to sustain liquidity, particularly if growth accelerates.

• Build Capital Reserves:
  Explore increasing share capital or retained earnings buffers to strengthen the equity base further, which will provide resilience against potential downturns.

• Plan for Audit Preparedness:
  As the company grows, be prepared for potential audit requirements or more detailed financial reporting, ensuring robust accounting systems are in place.

• Governance Review:
  Ensure that the board’s composition and governance practices align with UK regulatory expectations despite foreign ownership, to mitigate any cross-border compliance risks.

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