ALEVA LTD

Executive Summary

ALEVA LTD is financially stable and well-capitalized for its first year of operations, showing healthy liquidity and positive net assets. The company exhibits no signs of distress, but as a start-up with limited financial history, ongoing focus on revenue growth and cash management is essential. Maintaining this financial discipline will support sustainable growth and long-term business health.

ALEVA LTD - Analysis Report

Company Number: 14778681

Analysis Date: 2025-07-20 16:27 UTC

Financial Health Assessment Report for ALEVA LTD

---

1. Financial Health Score: B

Explanation:
ALEVA LTD demonstrates a generally healthy financial position for a newly incorporated private limited company. The company exhibits strong liquidity with positive net current assets and a solid equity base relative to its size and age. However, the company is early in its lifecycle with limited financial history and low fixed asset base, which introduces some uncertainty and potential volatility. The score B reflects a stable but still developing financial health status.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	2,089	Modest investment in tangible assets, typical for a start-up phase.
Current Assets (Cash)	16,711	Healthy cash reserve indicating strong liquidity and ability to meet short-term obligations.
Current Liabilities	5,405	Current debts are low relative to cash, reducing risk of short-term insolvency.
Net Current Assets	11,306	Positive working capital, indicating the company can cover current liabilities comfortably.
Net Assets (Equity)	13,395	Strong equity position for a new company, showing retained earnings or capital injection.
Shareholders’ Funds	13,385	Equity closely aligned with net assets, suggesting no hidden liabilities or off-balance items.

Additional Observations:

• The company has one director and one employee, consistent with micro or small enterprise profile.
• No audit required or conducted, which is usual for a start-up of this size and filing exemption status.
• Turnover and profit details have not been disclosed, limiting deeper profitability analysis.

---

3. Diagnosis: What the Financial Data Reveals

ALEVA LTD shows classic signs of a financially "healthy patient" in the start-up stage:

• Healthy Cash Flow Symptoms: Cash on hand is strong (£16,711) relative to liabilities (£5,405), suggesting good liquidity and ability to cover expenses without strain. This liquidity acts like a steady heartbeat, ensuring operational sustainability.
• Adequate Capitalisation: Shareholders’ funds of £13,385 indicate that the company has been funded sufficiently to support initial operations and absorb early-stage losses if any.
• Asset Base: Fixed assets are low (£2,089) but this is expected in a service-oriented business (human health activities, consultancy) rather than manufacturing or capital-intensive sectors.
• No Signs of Financial Distress: The absence of overdue filings, no audit issues, and positive net assets suggest no immediate financial distress symptoms such as liquidity crunch or excessive leverage.
• Limited Historical Data: As a company incorporated in 2023, ALEVA LTD has only one year of financial data, which limits trend analysis and long-term prognosis.

---

4. Recommendations: Actions to Improve Financial Wellness

1. Build Revenue and Profit Transparency:
   Although turnover figures are not published, management should track and report detailed sales and profit data internally to monitor operational success and identify growth opportunities.

2. Maintain Strong Cash Reserves:
   Continue prudent cash management to ensure liquidity remains robust, especially as the company scales or invests in new projects.

3. Invest in Asset Base Wisely:
   Consider strategic investment in fixed assets or technology that could enhance service delivery without overextending capital.

4. Plan for Growth and Risk Management:
   As the company grows, formalize financial controls, budgeting, and forecasting processes to anticipate cash flow needs and mitigate risks.

5. Prepare for Compliance and Reporting:
   Although currently exempt from audit, prepare for eventual transition to more comprehensive reporting as turnover and size increase.

---