AK PRINT AND DESIGN LTD

Executive Summary

AK PRINT AND DESIGN LTD exhibits a strong and improving financial condition characterized by growing assets, positive working capital, and stable operations typical of a healthy micro-enterprise. The company is well-positioned for continued growth but should maintain vigilance on cash flow management and consider strategic financing options to support future expansion.

AK PRINT AND DESIGN LTD - Analysis Report

Company Number: SC669941

Analysis Date: 2025-07-19 12:22 UTC

Financial Health Assessment for AK PRINT AND DESIGN LTD (as of 31 August 2024)

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1. Financial Health Score: B+

Explanation:
AK PRINT AND DESIGN LTD demonstrates a solid and improving financial position typical of a growing micro-entity in the printing sector. The company shows healthy net current assets and a strong positive trend in net assets over the past years. While the share capital is minimal (£2), the retained earnings and asset base are robust for its scale. The score reflects a well-managed business with good liquidity and asset growth, though there remains some room for improvement in operational cash flow optimization and capital structure.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2024 Value (£)	Interpretation
Fixed Assets	51,508	Significant increase (+108%) from previous year, indicating investment in equipment or property to support business growth. Healthy capital expenditure signal.
Current Assets	102,576	Increased liquidity (+57% from 2023), showing strong short-term asset base, possibly cash or receivables. Indicates ability to meet short-term obligations.
Current Liabilities	59,801	Increased from previous year, but well covered by current assets, indicating manageable short-term debts.
Net Current Assets (Working Capital)	43,370	Healthy positive working capital, showing strong buffer for day-to-day operations and no immediate liquidity concerns.
Net Assets (Equity)	93,610	Nearly doubled from 2023, reflecting retained profits or asset appreciation; a sign of increasing company value and stability.
Share Capital	2	Minimal starting capital, common for micro companies, but equity mainly built through earnings and asset growth.
Employees	2	Stable workforce size, typical for a micro company; suggests focused and possibly efficient operations.

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3. Diagnosis (What the Numbers Reveal)

• Healthy Cash Flow & Liquidity: The positive net current assets indicate the company has enough short-term assets to cover liabilities, akin to a patient with a strong pulse and normal blood pressure — no signs of short-term financial distress.
• Growth Phase: The doubling of net assets and fixed assets signals the company is investing in its infrastructure and growing its asset base. This is like a patient gaining strength through good nutrition and exercise — the business is developing a stronger foundation.
• Conservative Capital Structure: The low share capital but high equity suggests the company has relied on retained earnings for growth rather than external equity injections. This is positive for control but may limit the ability to raise funds quickly.
• No Overdue Filings: Timely filing of accounts and confirmation statements indicates good management compliance and governance — akin to regular health check-ups.
• Stable Workforce: Maintaining 2 employees suggests operational efficiency but also potential vulnerability if key staff are unavailable or if workload increases rapidly.

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4. Recommendations (Improving Financial Wellness)

• Monitor Working Capital Cycles: Although current liquidity is healthy, continuous monitoring of receivables and payables is essential to maintain smooth cash flow, especially as the company grows. This is like ensuring a patient maintains hydration and nutrient levels.
• Consider Financial Buffer: With increasing fixed assets, ensure that debt levels or other liabilities do not rise disproportionately. Avoid over-leveraging which can stress liquidity.
• Evaluate Capital Structure: Explore options for increasing share capital or external funding if growth ambitions require more investment, to avoid over-reliance on internal funds. This would be like adding supplements to a strengthening patient’s regimen.
• Plan for Employee Growth: If business volume increases, consider strategic hiring or outsourcing to avoid operational bottlenecks.
• Maintain Compliance Rigor: Keep up timely filings and financial record-keeping to avoid regulatory "health shocks" such as penalties or reputational damage.

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