Company Number: 14937771

Analysis Date: 2025-07-29 15:41 UTC

Financial Health Assessment of Akómi Limited

---

1. Financial Health Score: B

Explanation:
Akómi Limited shows a solid financial footing for a newly incorporated micro-entity, with positive net assets and healthy working capital. The company is in the early stages of operation (less than one year), which naturally limits the depth of financial data available. The presence of director loans and positive net current assets suggests initial funding and good liquidity, but the small asset base and lack of profit/loss information mean there is still moderate risk and uncertainty. Hence, a grade of B reflects generally good health with room for development.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,040	Minimal long-term investments, typical for a new micro company.
Current Assets	9,147	Includes cash and receivables; shows accessible liquid resources.
Current Liabilities	2,817	Short-term debts; manageable relative to current assets.
Net Current Assets	6,330	Positive working capital indicating good short-term financial health.
Net Assets (Shareholders' Funds)	6,570	Positive equity position, indicating the company is solvent.
Directors’ Loan (within Debtors)	7,798 (loan to directors)	Unsecured, interest-free loan to directors; reflects internal financing but may require monitoring for related party risks.
Number of Employees	3	Small team, consistent with micro-entity status.

---

3. Diagnosis: What the Financial Data Reveals

• Healthy Cash Flow Indicators: The company holds more current assets than liabilities, resulting in a positive net working capital of £6,330. This "healthy cash flow" symptom suggests the business has the means to meet its short-term obligations without distress.
• Solvency: Positive net assets of £6,570 indicate the company is solvent and has built some equity since incorporation. This is a "stable heart rhythm" in financial terms.
• Early Stage Growth: Given Akómi Limited was incorporated in June 2023 and has filed its first accounts for a period ending March 2024, the company is in its infancy. The financial "vital signs" are strong for a start-up, but there is limited history to assess profitability or cash generation capability over time.
• Director Loans: The presence of a director loan of £7,798 is a notable factor. While this can be a normal startup funding mechanism, it introduces a "symptom" of potential reliance on internal financing which should be monitored carefully.
• Micro-Entity Status: The company benefits from simplified accounting standards and filing requirements, which is typical for smaller, less complex entities.

---

4. Recommendations: Actions to Improve Financial Wellness

• Monitor Cash Flow Regularly: Maintain vigilance on working capital to ensure the company can continue to meet short-term liabilities as operations scale.
• Formalize Director Loan Terms: Clarify and document loan arrangements with directors to avoid potential conflicts or misunderstandings. Consider whether repayment schedules or interest terms should be introduced.
• Build Profitability: Focus on revenue generation and controlling costs to move beyond initial funding and build retained earnings. This will strengthen the company’s "immune system" against future financial shocks.
• Plan for Growth: As the company grows, consider moving beyond micro-entity status to adopt fuller financial reporting, which can help attract investors or lenders by providing more transparency.
• Governance and Risk Management: With three directors holding control, ensure clear governance structures are in place to manage decision-making and risk.
• Future Audits: While currently exempt from audit, prepare for possible audit requirements as the company grows, which will add credibility to financial statements.

---