AKAL GROUP OF COMPANIES LIMITED

Executive Summary

Akal Group Of Companies Limited is in the early stages of its business lifecycle, showing a minimal financial footprint typical of a micro-entity startup. While the company currently holds positive net assets and no overdue filings, its financial base is fragile with very limited operational data. Focused efforts on scaling operations, improving financial reporting, and strengthening governance will be essential to ensure a healthier financial trajectory.

AKAL GROUP OF COMPANIES LIMITED - Analysis Report

Company Number: 14721445

Analysis Date: 2025-07-20 14:48 UTC

Financial Health Assessment Report for Akal Group Of Companies Limited

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1. Financial Health Score: D

Explanation:
The financial health score of D reflects the extremely limited financial data available and the nascent stage of the company. The company shows very minimal financial activity, with only £100 in current assets and net assets. This low asset base indicates a fragile financial position typical of a newly incorporated micro-entity. While there are no signs of distress such as liabilities exceeding assets or overdue filings, the company’s financial "vital signs" are weak, signalling vulnerability and a need for growth and operational development.

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2. Key Vital Signs:

Metric	Value	Interpretation
Current Assets	£100	Cash or equivalents on hand; extremely low, indicating minimal liquidity.
Net Current Assets	£100	Working capital is positive but negligible, reflecting minimal operational scale.
Net Assets (Equity)	£100	Represents shareholders’ funds; minimal capital invested or generated retained earnings.
Average Number of Employees	1	Very small workforce, consistent with micro-entity status.
Profit and Loss Account	Not filed	No reported profit or loss data, limiting insight into operational performance.

Interpretation:
The “vital signs” show a company at the very start of its lifecycle. The positive net current assets indicate no immediate liquidity distress — akin to a patient with stable but very low vital signs. The absence of debt and liabilities is a positive symptom, but the extremely low asset base and no profit/loss reporting suggest the company has yet to establish a stable revenue stream or operational footprint.

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3. Diagnosis:

• Early-stage startup condition: The company was incorporated in March 2023 and has filed accounts for its first financial year ending March 2024. Its financial statements are prepared under the micro-entity regime, which provides for simplified reporting.
• Minimal financial activity: The company holds only £100 in assets, with no reported liabilities. This “thin” financial structure is typical of a newly formed entity that has yet to make significant sales, investments, or incur expenses.
• No audit requirement and limited disclosures: The exemption from audit and minimal filings mean the financial transparency is limited to surface-level data.
• Stable but fragile: No overdue filings, no liabilities, and positive net assets indicate no immediate financial distress. However, the company’s financial health is fragile — much like a patient with a low but stable heart rate who requires monitoring and intervention to improve strength.
• Management changes: The company has experienced director changes within a short period, which might reflect early-stage governance adjustments.

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4. Recommendations:

• Build operational scale: Increase business activities to generate revenue and establish a stable cash flow. This is critical for transitioning from the startup "infant" stage to a healthy, growing enterprise.
• Maintain accurate and timely financial records: Ensure profit and loss accounts and other statutory filings are kept up to date as the company grows. These are essential “diagnostic tools” for ongoing financial health monitoring.
• Increase capital injection or generate profits: The current equity base of £100 is insufficient for sustained operations. Consider additional funding rounds, loans, or reinvesting profits to strengthen the balance sheet.
• Governance stability: Stabilize the management structure to ensure consistent strategic direction and accountability.
• Cash flow management: As the company grows, monitor cash inflows and outflows carefully to avoid liquidity crises—a healthy cash flow is the lifeblood of any business.
• Seek professional advice: Engage with financial advisors or accountants to establish robust financial controls and forecasting.

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