AI BELL LTD

Executive Summary

AI BELL LTD is financially solvent with positive net assets and good liquidity, but recent declines in reserves and net assets indicate emerging financial stress. To maintain healthy financial "vital signs," the company should focus on improving profitability, managing cash flow carefully, and considering reinvestment or capital strengthening to support future stability and growth.

AI BELL LTD - Analysis Report

Company Number: 13680974

Analysis Date: 2025-07-29 18:03 UTC

Financial Health Assessment for AI BELL LTD (as of 31 October 2024)

---

1. Financial Health Score: B-

Explanation:
AI BELL LTD demonstrates a moderate financial position with positive net assets and working capital, indicating a baseline healthy financial "heartbeat." However, there has been a noticeable decline in net assets and net current assets compared to prior years, suggesting emerging symptoms of financial stress that warrant attention.

---

2. Key Vital Signs (Core Financial Metrics)

Metric	2024 Figure (£)	Interpretation
Net Assets	5,087	Positive net assets indicate the company owns more than it owes, a fundamental sign of solvency. However, this has decreased from £9,128 in 2023, a 44% drop, indicating diminished equity buffer.
Net Current Assets	5,087	Positive working capital ("healthy cash flow reservoir") but reduced from £8,978 in 2023, suggesting tightening liquidity.
Cash at Bank	27,984	Strong cash reserves relative to current liabilities (£22,897), supporting short-term obligations.
Current Liabilities	22,897	Current liabilities are slightly increasing, which could pressure liquidity if not matched by asset growth.
Fixed Assets	0	Complete depreciation or disposal of fixed assets; no long-term tangible assets remain, which may impact capital structure.
Share Capital	3	Minimal share capital, typical for a small private company.
Profit & Loss Reserves	5,084	Retained earnings have declined sharply from £9,125 in 2023, reflecting reduced profitability or increased losses.

---

3. Diagnosis: Financial Condition Analysis

• Liquidity: AI BELL LTD maintains a "healthy cash flow" with cash balances exceeding current liabilities, which is a good sign of short-term financial stability. However, the reduction in working capital indicates a trend towards tighter liquidity, which should be monitored closely.

• Solvency: The positive net assets confirm the company is solvent, but the nearly 44% drop in net assets within a year signals "symptoms of distress." If this trend continues, it may erode the financial foundation.

• Asset Base: The company has fully depreciated its fixed assets, leaving it with no tangible long-term assets. This could limit borrowing capacity or ability to invest in growth assets, potentially restricting future operational flexibility.

• Profitability / Reserves: The significant drop in retained earnings likely reflects lower profits or possibly losses in the last financial year. This "warning sign" suggests the company is experiencing operational challenges impacting its bottom line.

• Governance & Control: Ownership and control are concentrated in two individuals, which can be positive for decisive management but may limit external checks and balances.

• Compliance: The company is up to date with filings and has not triggered audit requirements, consistent with its small company status.

---

4. Recommendations: Improving Financial Wellness

• Strengthen Profitability: Conduct a thorough review of income and expenses to identify cost-saving opportunities and revenue enhancement strategies. Consider market positioning and pricing adjustments to improve margins.

• Enhance Asset Management: Explore reinvesting in tangible or intangible assets that can support growth and operational efficiency, ensuring depreciation aligns with asset utilization.

• Monitor Cash Flow: Maintain close tracking of cash inflows and outflows to anticipate liquidity pressures early and manage working capital effectively.

• Plan for Capital Injection: Given the minimal share capital and declining reserves, consider options for additional equity or debt financing to bolster the financial base if growth or operational needs demand it.

• Risk Management: Develop contingency plans to mitigate financial shocks, including diversifying customer base or services to reduce dependence on limited revenue streams.

• Governance: Consider establishing advisory support or external reviews to provide broader oversight and strategic guidance.

---