ALANA FORREST LIMITED

Executive Summary

ALANA FORREST LIMITED demonstrates solid financial health with positive liquidity and improving solvency, reflected by growing net assets and reduced liabilities. The company’s cash flow is healthy, and debt levels have declined, indicating effective financial management. To further enhance financial wellness, improving profitability transparency and continuing debt reduction are recommended.

ALANA FORREST LIMITED - Analysis Report

Company Number: SC668441

Analysis Date: 2025-07-29 20:22 UTC

Financial Health Assessment Report for ALANA FORREST LIMITED

---

1. Financial Health Score: B

Explanation:
ALANA FORREST LIMITED demonstrates a generally sound financial position with positive net assets and improving shareholder funds over recent years. The company has maintained a healthy liquidity position and has managed to reduce its longer-term liabilities significantly in the latest year. Nonetheless, some caution is warranted due to fluctuations in current liabilities and the absence of detailed profit and loss data, which limits a full profitability assessment.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Net Current Assets (Working Capital)	4,829	Positive working capital indicates the company can cover short-term debts comfortably—a sign of healthy cash flow "pulse."
Cash and Cash Equivalents	8,319	Strong cash position, providing liquidity to meet immediate obligations—a "healthy heartbeat."
Current Liabilities	3,570	Reduced from prior years, indicating better short-term financial management and less "stress" on obligations.
Long-term Liabilities	6,426	Significantly decreased from £11,676 in 2023, lowering the "burden" of debt and improving solvency.
Net Assets / Shareholders' Funds	8,066	Positive and increasing equity base over time, showing retained earnings growth and business "vitality."
Fixed Assets (Net Book Value)	9,663	Investment in long-term assets suggests capital expenditure, potentially supporting future revenue generation—akin to building muscle strength.
Debtors	£0 in 2024	Previous year debtors were £5,250; now zero, indicating improved collection or change in sales terms, reducing risk of bad debts.

---

3. Diagnosis

ALANA FORREST LIMITED displays several signs of robust financial health:

• Liquidity: The company’s current assets, particularly cash, comfortably exceed current liabilities, indicating good liquidity and the ability to meet short-term obligations without strain. This healthy cash flow reduces the risk of operational interruptions.

• Solvency: Net assets increased from £5,668 (2023) to £8,066 (2024), reflecting an accumulation of retained earnings and reduction in liabilities. The trimming of long-term creditors from £11,676 to £6,426 is a positive "symptom" of debt management and reduced financial stress.

• Asset Management: The company’s fixed assets are substantial relative to its size, indicating investments in plant and machinery. Depreciation charges are being accounted for, showing ongoing asset utilization and renewal.

• Working Capital Efficiency: The elimination of debtors in 2024, compared to £5,250 in previous years, suggests improved receivables collection or possibly a shift in business operations (e.g., more cash sales). This reduces liquidity risk and improves cash flow reliability.

However, some caution points ("symptoms") include:

• The absence of a detailed profit and loss statement limits insight into profitability trends and expense control.

• Although current liabilities have decreased, the company still holds a moderate level of long-term creditors, which need to be managed carefully to avoid liquidity crunches in the future.

• The company is small and relatively young (incorporated 2020), so financial resilience against market shocks should be monitored.

Overall, the company exhibits a stable financial "heart rhythm" with good liquidity and improving solvency, though profitability and operational efficiency require further visibility.

---

4. Recommendations

To improve financial wellness and strengthen future prospects, ALANA FORREST LIMITED should consider the following actions:

• Profitability Transparency: Provide a fuller Profit & Loss account in future filings to diagnose operational efficiency and profitability health. This will help identify areas to enhance margins or reduce costs.

• Debt Management: Continue to focus on reducing long-term liabilities ("debt load") to improve solvency and reduce interest burden, which will free up cash flow for growth initiatives.

• Receivables Policy: Maintain strong credit control to prevent build-up of debtors, ensuring continued healthy cash flow. The company’s zero debtors in 2024 is a positive step; sustaining this is crucial.

• Asset Utilization: Review fixed asset usage to ensure investments are yielding expected returns. Avoid overcapitalization that could tie up cash unnecessarily.

• Financial Forecasting: Develop rolling cash flow forecasts and stress testing to anticipate liquidity needs and manage working capital proactively, especially given the company’s small size and evolving business model.

• Growth Planning: With a solid equity base and cash position, consider strategic investments or marketing to drive revenue growth while monitoring costs and margins closely.

---

Executive Summary
ALANA FORREST LIMITED shows a strong liquidity position and improved solvency with growing shareholder funds and reduced debt burden. The company’s financial "vital signs" suggest stable health, though the lack of detailed profitability data limits a complete diagnosis. Continued focus on debt reduction, receivables management, and profitability transparency will enhance long-term resilience and growth potential.