AKS PROPERTIES ARE LIMITED
Executive Summary
AKS PROPERTIES ARE LIMITED is a dormant private limited company with stable but minimal financial activity, reflected by constant nominal cash and equity balances. While there is no financial distress, the lack of operational activity limits growth potential and vitality. To improve financial health, the company should clarify its strategic intent, plan for capital needs if activating trading, or consider formal closure if no business operations are planned.
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This analysis is opinion only and should not be interpreted as financial advice.
AKS PROPERTIES ARE LIMITED - Analysis Report
Financial Health Assessment for AKS PROPERTIES ARE LIMITED
1. Financial Health Score:
Grade: D – The company is currently dormant with minimal financial activity and assets. While there are no immediate signs of distress, the lack of operational financial data limits the ability to assess ongoing business performance or growth potential.
2. Key Vital Signs:
- Dormant Status: The company has filed dormant accounts consistently, indicating no significant trading or financial transactions during the reported periods.
- Cash Position: Steady cash balance of £1,000 across all reported years. This is a very low level of liquidity, reflecting minimal operational activity.
- Net Assets and Shareholders’ Funds: Both stand at £1,000, reflecting only the nominal share capital, with no retained earnings or accumulated reserves.
- No Liabilities or Debts Reported: Absence of liabilities suggests no financial distress but also no business operations generating financial movement.
- Filing Compliance: Accounts and returns are up to date with no overdue filings, indicating good administrative health and compliance.
- Company Age: Incorporated in March 2020, the company is relatively young but has remained dormant throughout its existence.
- Directors and Secretary: Current appointments are up to date, with a director who is an accountant, which may support proper governance.
3. Diagnosis:
The company displays the "symptom" of financial quiescence — it is dormant with no trading activity. This "hibernation" means it is neither generating income nor incurring expenses, preserving its capital but also not growing. The minimal cash and net asset position reflect that the business has not yet commenced active operations or investments. From a financial health perspective, the company is stable in that it is not incurring losses or liabilities, but it also shows no signs of vitality or financial robustness.
This status could be likened to a patient in remission: stable but inactive. The company is not in distress but lacks the financial "heartbeat" of active transactions that would indicate growth, income generation, or operational health.
4. Recommendations:
- Review Business Strategy: Evaluate the purpose of maintaining the dormant company and consider activating operations if the business plan is still valid. Prolonged dormancy without clear plans may lead to missed market opportunities.
- Capital Injection: If intending to commence trading, ensure adequate working capital beyond the nominal £1,000 share capital to support initial operations and cash flow needs.
- Financial Planning: Develop a budget and cash flow forecast to anticipate capital requirements and operational costs once active.
- Compliance Maintenance: Continue timely filing of annual accounts and confirmation statements to avoid penalties and maintain good standing.
- Consider Formal Closure: If there is no intention to trade, evaluate whether dissolving the company might be more cost-effective than maintaining a dormant status.
- Engage Professional Advice: Seek guidance on tax implications and legal requirements when transitioning from dormant to active status or considering closure.
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