AGGLISH LIMITED

Executive Summary

Agglish Limited is currently solvent but exhibits signs of liquidity strain with negative working capital and reduced cash reserves. The company’s financial condition is fragile, requiring careful cash flow management and cost control to avoid distress. Strengthening cash reserves and improving operational efficiency will be critical to ensure sustainable financial health going forward.

AGGLISH LIMITED - Analysis Report

Company Number: 13990992

Analysis Date: 2025-07-29 16:44 UTC

Financial Health Assessment Report for Agglish Limited

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1. Financial Health Score: C

Explanation:
Agglish Limited shows signs of a fragile financial condition with tight liquidity and working capital constraints. While the company remains solvent with positive net assets and shareholder equity, the near break-even net current assets and declining cash reserves indicate caution. The company is not in immediate distress but exhibits symptoms of financial strain that require proactive management.

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2. Key Vital Signs

Metric	2024 Figure	Interpretation
Current Assets	£133,819	Limited short-term resources
Cash	£110,486	Cash reserves have halved from £233,907 in 2023
Debtors	£23,333	Moderate receivables, positive for cash inflow
Current Liabilities	£134,074	High short-term obligations almost equal current assets
Net Current Assets (Working Capital)	-£255	Slightly negative, indicates liquidity strain
Total Assets Less Current Liabilities	£416	Marginal net assets, indicates solvency but thin buffer
Shareholders’ Funds	£416	Positive equity but very low, minimal cushion
Tangible Fixed Assets	£671	Small investment in long-term assets

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3. Diagnosis

Liquidity and Working Capital:
The company's working capital is slightly negative with current liabilities just exceeding current assets by £255. This is a crucial symptom indicating that the company might struggle to cover short-term debts as they fall due without additional cash inflows or financing. The cash position has decreased significantly year-over-year from £233,907 to £110,486, further suggesting cash burn or increased operational demands.

Solvency:
Despite the liquidity concerns, the company shows positive net assets and shareholder equity, albeit marginal (£416). This implies the business remains solvent but with very little financial cushion. The tangible fixed assets are minimal and depreciating, reflecting modest investment in physical resources.

Profitability and Income Statement:
The income statement is not provided, but the retained earnings increased from £223 to £316, suggesting a small net profit or retained surplus. However, the increase is modest, indicating limited profitability or possibly reinvestment.

Operational Health:
The company operates in management consultancy (SIC 70229) with one director and an average of one employee, suggesting a very small enterprise with limited scale. Small companies often face cash flow volatility and are sensitive to client payment delays.

Control and Governance:
The sole director, Mr Killian Crowe, owns 75-100% of shares and voting rights, offering streamlined decision-making but also concentration risk.

Summary of Symptoms:

• Negative but marginal working capital ("symptom of liquidity strain").
• Significant cash reduction ("symptom of cash flow stress").
• Positive but minimal net assets ("thin solvency buffer").
• Small scale operation limiting financial flexibility.

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4. Recommendations

1. Improve Liquidity Management:

• Accelerate debtor collections to improve cash inflows.
• Negotiate extended payment terms with suppliers to ease cash outflows.
• Consider short-term financing options (e.g., overdraft or invoice financing) to manage liquidity gaps.

2. Monitor and Control Costs:

• Review operating expenses carefully to identify and eliminate unnecessary costs.
• Maintain tight budget controls given limited financial margins.

3. Build Cash Reserves:

• Aim to rebuild cash buffer to cover at least 3 months of operating expenses.
• Reinvest profits prudently to strengthen financial resilience.

4. Strategic Growth Planning:

• Explore opportunities to increase turnover to improve economies of scale.
• Diversify client base to reduce concentration risk and enhance revenue stability.

5. Governance and Reporting:

• Ensure timely and accurate financial reporting to spot early signs of distress.
• Consider external financial advice for cash flow forecasting and strategic planning.

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Medical Analogy Summary

Agglish Limited's financial health resembles a patient with borderline vital signs: the heartbeat (cash flow) is weak and irregular, and the blood pressure (working capital) is slightly low, signaling early symptoms of distress. While the patient is not critically ill (not insolvent), without intervention, the risk of financial shock (liquidity crisis) rises. Proactive treatment focusing on restoring fluid balance (cash), reducing strain on the heart (cost management), and strengthening immunity (building reserves) is essential for a full recovery.

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