ALEXANDER ARCOLEO LTD

Executive Summary

Alexander Arcoleo Ltd shows a robust and improving financial condition with healthy liquidity, growing net assets, and no financial distress symptoms. The company’s strong balance sheet and prudent management practices position it well for sustainable operations and potential growth. Continued focus on liquidity management and strategic planning will further enhance its financial wellness.

ALEXANDER ARCOLEO LTD - Analysis Report

Company Number: 12842548

Analysis Date: 2025-07-19 12:26 UTC

Financial Health Assessment Report for ALEXANDER ARCOLEO LTD

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1. Financial Health Score: A

Explanation:
ALEXANDER ARCOLEO LTD demonstrates a strong and improving financial position with solid net assets growth, healthy working capital, and no signs of financial distress. The company’s balance sheet shows robust liquidity and increasing fixed assets, indicating business expansion or investment in long-term resources. The absence of debt beyond manageable creditors and accruals further supports a high-grade rating.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	112,772	Significant increase from £65,538 in 2023, indicating investment in long-term resources.
Current Assets	328,945	Healthy level of short-term assets, mainly cash or receivables, providing liquidity.
Current Liabilities	36,920	Low short-term debts; comfortably covered by current assets.
Net Current Assets (Working Capital)	294,781	Strong positive working capital, a vital sign of short-term financial health and operational liquidity.
Total Assets Less Current Liabilities	407,553	Indicates overall asset base after covering immediate liabilities.
Creditors Due After One Year	36,920	Some longer-term liabilities but within controllable limits.
Net Assets (Equity)	368,765	Growing equity base reflecting retained earnings and business growth.
Share Capital	100	Minimal share capital, typical for a micro company, with most value in retained profits.
Employees	0	No employees, implying either a sole trader setup or outsourcing of operations.

Additional Notes:

• The company qualifies as a Micro-entity, simplifying compliance but still showing solid financial fundamentals.
• No overdue filings indicate good governance and compliance health.
• The director is also the sole significant controller, reflecting centralized decision-making.

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3. Diagnosis: What the Financial Data Reveals About Business Health

The financial "vital signs" paint a picture of a financially fit company with no symptoms of distress. The steady increase in fixed assets suggests investment into the business, much like a patient building muscle mass—strengthening the core. The robust net current assets indicate the company has a "healthy cash flow," able to meet short-term obligations without strain.

The net assets have grown from approximately £138k in 2020 to nearly £369k in 2024, signaling sustained profitability or capital appreciation. The absence of employees could mean the company operates leanly or relies on contract work, reducing fixed costs and financial risk.

No signs of financial "symptoms" such as negative working capital, excessive liabilities, or overdue filings are present. The company maintains good compliance hygiene, which supports ongoing operational health and reduces risk of regulatory complications.

Overall, the financial health is strong, with a clean balance sheet and positive growth trend, indicating the company is in a stable and sustainable position.

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4. Recommendations: Actions to Improve Financial Wellness

• Maintain Strong Liquidity: Continue prudent management of current assets to ensure ongoing ability to cover short-term liabilities, preserving the "healthy cash flow" status.
• Monitor Long-Term Liabilities: The appearance of creditors due after one year (£36,920) warrants attention; ensure these are manageable and aligned with asset growth to avoid future liquidity strain.
• Consider Capital Structure Optimization: With minimal share capital (£100), the company could explore options to increase equity or access external finance if expansion is planned, balancing the capital base with business growth.
• Document Operational Strategy: Given the lack of employees, formalize outsourcing or contractor agreements to ensure operational continuity and manage risks related to reliance on external parties.
• Continue Compliance Vigilance: Timely filing of accounts and confirmation statements is critical to avoid penalties and maintain credibility with stakeholders.
• Plan for Growth or Diversification: With strong net assets and financial stability, the company might explore opportunities to expand its artistic creation activities or diversify revenue streams to enhance resilience.

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