ALEX FREIGHT SERVICES LTD

Executive Summary

ALEX FREIGHT SERVICES LTD currently operates with minimal financial cushioning, reflected in low net assets and tight liquidity. The company’s financial health is fragile, posing risks if faced with operational or market shocks. Immediate focus on improving cash flow, controlling costs, and injecting capital is essential to build resilience and support future growth.

ALEX FREIGHT SERVICES LTD - Analysis Report

Company Number: 12506373

Analysis Date: 2025-07-29 14:36 UTC

Financial Health Assessment: ALEX FREIGHT SERVICES LTD (As of 31 March 2025)

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1. Financial Health Score: D

Explanation:
The company exhibits very limited financial robustness. While it remains active and compliant with filing deadlines, the financial "vital signs" show minimal net assets and working capital, very low cash reserves, and no retained earnings or profit reserves. This suggests the business is operating on a very tight financial margin, making it vulnerable to cash flow shocks or unexpected expenses. The score of D reflects a state of financial fragility akin to a patient with low energy reserves who can function but is at risk of rapid decline without intervention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank	2,054	Barely sufficient liquidity; "healthy cash flow" is weak
Current Liabilities	1,954	Short-term debts nearly equal to cash—tight liquidity
Net Current Assets	100	Minimal working capital; symptoms of financial strain
Net Assets (Shareholders' Funds)	100	Very low equity base indicates limited financial cushion
Share Capital	10	Nominal capital invested; little buffer for growth
Profit & Loss Reserves	0	No accumulated profits; no financial "healing" over time
Employees	1	Micro-business scale, low operational capacity

• Liquidity: Cash barely covers immediate liabilities, suggesting limited room to manoeuvre financially.
• Solvency: Net assets are positive but extremely low, indicating the company is just "breathing" financially.
• Profitability: Lack of profit reserves suggests the company has not generated sustained profits.
• Size & Scale: Micro-business with only one employee, which limits operational flexibility.

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3. Diagnosis

ALEX FREIGHT SERVICES LTD is in a fragile financial state. The company's very low net assets and minimal working capital are "symptoms of distress." Despite compliance with filing deadlines and maintaining active status, the company’s balance sheet shows almost no financial "reserves" or "energy" to absorb shocks such as sudden expenses or downturns in business. The absence of profit reserves indicates that the company has not been profitable or has distributed any profits immediately, leaving no internal funds for reinvestment or cushioning losses.

The liquidity position is particularly concerning: cash barely exceeds current liabilities, akin to a patient with just enough oxygen to survive but not enough to sustain increased metabolic demands. The small scale of operations (one employee) further limits the company’s ability to generate significant revenue or scale.

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4. Recommendations

Immediate Actions:

• Improve Cash Flow Management: Tighten credit control and accelerate receivables collection to build a healthier cash buffer.
• Cost Control: Review and reduce unnecessary expenses to improve net current assets.
• Capital Injection: Consider additional equity investment or shareholder loans to increase net assets and capacity to invest in growth.
• Profitability Focus: Develop a clear strategy to improve profitability, such as reviewing pricing, negotiating better supplier terms, or expanding customer base.

Strategic Steps:

• Financial Planning: Implement regular financial forecasting to anticipate cash flow gaps and plan accordingly.
• Diversify Revenue Streams: Explore opportunities to increase turnover beyond current levels to build financial "resilience."
• Seek Professional Advice: Engage with financial advisors to explore restructuring options or funding opportunities.

Improving these areas will help the company move from a fragile financial state to a more stable and sustainable position, akin to strengthening a patient’s immune system for long-term health.

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