AK TEACH LTD

Executive Summary

AK TEACH LTD exhibits a strong equity position and positive working capital, signaling good financial health for a micro-entity. The recent investment in fixed assets and the decline in current assets highlight areas to monitor closely for cash flow management. With prudent financial controls and strategic planning, the company is well-positioned for sustainable growth in the educational support sector.

AK TEACH LTD - Analysis Report

Company Number: 13387220

Analysis Date: 2025-07-29 17:54 UTC

Financial Health Assessment for AK TEACH LTD as of 31 March 2025

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1. Financial Health Score: B

Explanation:
AK TEACH LTD demonstrates a solid financial foundation with positive net assets and shareholder funds that have grown substantially over the past years. The company maintains positive net current assets (working capital), indicating healthy liquidity to meet short-term obligations. However, a notable reduction in current assets in the latest year and the introduction of fixed assets warrant cautious monitoring. The absence of audit and limited employee count are typical for a micro-entity but may imply limited operational scale and scrutiny.

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2. Key Vital Signs

Metric	2025 Value (£)	Interpretation
Fixed Assets	22,126	Newly acquired long-term assets, possibly investment in equipment or property, signaling growth or capital expenditure.
Current Assets	3,154	Sharp decrease from previous year’s £14,205, indicating reduced liquid resources or receivables — could be a liquidity symptom to watch.
Current Liabilities	131	Low short-term obligations; easily covered by current assets.
Net Current Assets	3,023	Positive working capital, showing ability to cover short-term debts.
Net Assets (Shareholders’ Funds)	25,149	Strong equity base; increased significantly from £9,738 in 2024, reflecting retained earnings or capital injections.
Employee Count	1	Micro-entity size; limited human resources impact scalability.

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3. Diagnosis (What the Numbers Reveal)

• Liquidity ("Healthy cash flow"): The company has a positive net current asset position, meaning it can comfortably meet its short-term liabilities. This is a good sign of financial well-being. However, the significant drop in current assets from £14,205 to £3,154 is a symptom worth investigating—this could be due to lower cash reserves or collection of receivables.

• Solvency ("Strong backbone"): Net assets have increased markedly, rising from £9,738 to £25,149, indicating the company’s equity is growing and the business is building a stronger capital base. This is a positive sign of long-term sustainability.

• Asset Structure: The addition of £22,126 in fixed assets suggests investment in durable resources, which can support operational growth but also ties up cash. This could be a cause for the reduced current assets.

• Scale and Operations: As a micro-entity with only one employee, the business operates on a small scale. This limits operational capacity but also keeps overheads low. The company’s micro-accounting exemption and unaudited status indicate simplified reporting, typical for its size.

• Governance & Control: The company is tightly controlled by Mrs. Agnieszka Kumar, who owns the majority of shares and voting rights, with Mrs. Monika Lukasik holding a significant minority stake. This concentrated ownership can facilitate swift decision-making but may pose risks if not balanced with external oversight.

• Historical Trends: The company has grown its net assets steadily since incorporation in 2021. The fluctuations in current assets and liabilities reflect typical early-stage business dynamics but should be monitored for cash flow consistency.

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4. Recommendations (Prescriptions for Financial Wellness)

• Cash Flow Monitoring: Investigate the cause of the large drop in current assets to ensure it is not due to delayed receivables or cash drain. Establish robust cash flow forecasting to avoid liquidity crunches.

• Asset Utilization: Assess the productivity and return on the new fixed assets invested (£22,126). Ensure these investments are aligned with revenue generation to avoid tying up capital in underperforming assets.

• Operational Efficiency: Given the small employee base, consider whether additional human resources or outsourcing could enhance capacity and support growth without disproportionately increasing costs.

• Financial Controls: As the company grows, consider implementing more formal financial controls and possibly voluntary audits to increase transparency and stakeholder confidence.

• Strategic Planning: Use the growing equity base as a foundation to plan for expansion or diversification of services within educational support. Maintain a balance between reinvestment and liquidity.

• Governance: Given the tight ownership structure, consider introducing advisory roles or non-executive oversight to provide independent perspectives and reduce governance risks.

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