AGILE DELIVERY PARTNERS LTD
Executive Summary
AGILE DELIVERY PARTNERS LTD is currently in a fragile financial state, with a drastic reduction in assets and shareholders’ funds signaling severe liquidity and solvency concerns. Immediate actions focusing on cash flow improvement, capital support, and cost management are essential to restore financial health and prevent insolvency risk.
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This analysis is opinion only and should not be interpreted as financial advice.
AGILE DELIVERY PARTNERS LTD - Analysis Report
Financial Health Assessment Report for AGILE DELIVERY PARTNERS LTD
1. Financial Health Score: D
Explanation:
The company exhibits significant signs of financial distress in its latest fiscal year, with a drastic reduction in assets and shareholders' funds. The sharp decline in current assets and net assets compared to previous years signals poor financial health, warranting a below-average rating.
2. Key Vital Signs
| Metric | 2024 (Latest Year) | 2023 (Prior Year) | Interpretation |
|---|---|---|---|
| Fixed Assets | £0 | £5,262 | Complete loss or disposal of fixed assets. |
| Current Assets | £434 | £49,019 | Severe drop in liquid assets—symptom of cash depletion. |
| Current Liabilities | £187 | £6,428 | Reduced liabilities but still present. |
| Net Current Assets (Working Capital) | £247 (434-187) | £42,591 (49,019-6,428) | Drastic reduction in working capital — indicates liquidity issues. |
| Shareholders’ Funds (Net Assets) | £247 | £47,853 | Collapse in equity base — signals erosion of company value. |
| Average Employees | 1 | 1 | No change in workforce size. |
Interpretation:
- Healthy cash flow and liquidity are critical “vital signs” for business wellbeing. The collapse from £49k in current assets to just £434 is a clear “symptom of distress” indicating cash exhaustion or asset liquidation.
- The near elimination of fixed assets suggests either disposal or write-down, possibly to meet liabilities or due to obsolescence.
- The plummeting shareholders’ funds from nearly £48k to just £247 signals either cumulative losses or capital erosion, a serious concern akin to severe anemia in a patient.
- However, current liabilities have decreased significantly, which could be due to repayment or reclassification, but without corresponding asset strength, this may hide liquidity constraints.
3. Diagnosis
AGILE DELIVERY PARTNERS LTD’s financial health has rapidly deteriorated in the year ending May 2024. The company shows severe depletion of liquid assets and net equity, which are key “vital signs” of a company’s ability to sustain operations. This depletion can indicate operational losses, poor cash management, or a decision to wind down assets. The balance sheet shrunk drastically, with net assets almost wiped out.
The company remains active but is operating with minimal resources, akin to a patient with weak vital signs requiring immediate intervention. The absence of fixed assets and minimal working capital suggest it lacks the financial “stamina” to invest or absorb shocks. This condition could risk insolvency if the liquidity situation does not improve promptly.
4. Recommendations
To improve financial wellness and stabilize the company, the following steps are advised:
- Cash Flow Management: Urgently improve cash inflows through enhanced sales, faster receivables collection, or securing new contracts. Tighten control on outflows to conserve cash.
- Capital Injection: Consider a capital infusion from shareholders or external investors to rebuild the equity base and provide working capital.
- Cost Control: Review and reduce discretionary expenses; optimize operations to achieve break-even or profitability.
- Asset Review: Evaluate any remaining assets for potential liquidation or better utilization to improve liquidity.
- Financial Monitoring: Implement regular financial health check-ups, akin to vital signs monitoring, to detect early symptoms of distress.
- Professional Advice: Engage with financial advisors or turnaround specialists to develop a recovery plan and avoid insolvency.
- Maintain Compliance: Ensure ongoing statutory filings and governance to avoid penalties that could worsen financial strain.
Executive Summary
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