AGILE PROFESSIONAL GROUP LTD

Executive Summary

Agile Professional Group Ltd demonstrates a robust and improving financial position typical of a healthy micro-entity IT consultancy. With strong working capital growth and increasing net assets, the company is financially stable and well-managed, though opportunities exist to enhance cash flow management and strategic investment. Continued focus on liquidity and prudent planning will support sustainable growth and financial resilience.

AGILE PROFESSIONAL GROUP LTD - Analysis Report

Company Number: 12500440

Analysis Date: 2025-07-29 15:49 UTC

Financial Health Assessment for Agile Professional Group Ltd

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1. Financial Health Score: B

Explanation:
Agile Professional Group Ltd exhibits a solid and improving financial position for a micro-entity, characterized by strong growth in net assets and healthy working capital. While the company demonstrates positive signs of financial wellness, some areas warrant monitoring and enhancement to elevate the grade to an A.

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2. Key Vital Signs

Metric	2025 Value (£)	Interpretation
Fixed Assets	580	Very low fixed asset base, typical for an IT consultancy micro business; no concerns here.
Current Assets	216,126	Healthy current assets indicating good liquidity and resource availability.
Current Liabilities	112,423	Moderate level of short-term obligations, manageable but requires active monitoring.
Net Current Assets (Working Capital)	36,300	Positive and significantly improved from previous years; indicates good short-term financial health.
Net Assets (Shareholders’ Funds)	36,040	Strong growth (nearly 5x increase since 2024); reflects accumulated profitability and retained earnings.
Average Number of Employees	5	Stable workforce size consistent with micro-entity status.
Share Capital	100	Minimal share capital, typical of small private limited companies.
Prepayments & Accruals	-67,403 (Prepayments), -840 (Accruals)	Some deferred income and prepayments suggest ongoing contracts and revenue recognition management.

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3. Diagnosis: What the Financial Data Reveals

The company shows vital signs of a "healthy cash flow" business, with robust growth in net current assets and net equity over the last financial year, indicating improved profitability and efficient working capital management. The significant increase in current assets, particularly cash or receivables, combined with controlled current liabilities, suggests the company is managing its short-term obligations well.

The low fixed asset base aligns with a service-based IT consultancy, which relies more on human capital than physical assets. The consistent staffing levels and stable directors’ involvement provide operational stability.

The presence of deferred income and prepayments suggests ongoing client engagements and a prudent approach to revenue recognition, which is a positive symptom of disciplined financial management.

No signs of financial distress such as negative working capital, declining equity, or increasing liabilities appear. The company is not in liquidation or administration and complies with filing deadlines, indicating good governance practices.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Enhance Cash Flow Management: While working capital is positive, maintaining strong liquidity is crucial. Regularly review debtor collections and creditor terms to optimize cash flow cycles.

• Build Fixed Asset Base Strategically: Although low fixed assets are typical, consider investing in relevant technology or software tools that can improve operational efficiency and competitive advantage.

• Monitor Liabilities: Continue to keep current liabilities in check and renegotiate terms if possible to improve cash conversion cycles.

• Formalize Financial Planning: Develop a rolling budget and cash flow forecast to anticipate funding needs and identify growth opportunities early, ensuring financial resilience.

• Strengthen Equity Position: Consider ways to increase shareholders’ funds either through retained earnings or potential capital injections to support expansion plans.

• Document Risk Management: Formalize risk assessments related to client concentration, market changes, or regulatory compliance to mitigate potential financial shocks.

• Maintain Compliance and Transparency: Keep up timely filings and transparency with stakeholders to support a healthy corporate reputation and facilitate potential financing or partnerships.

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