ALG MANAGEMENT SOLUTIONS LIMITED

Executive Summary

ALG Management Solutions Limited maintains a stable but weakening financial position with positive working capital and net assets. Declining asset values and zero employees indicate possible operational contraction, warranting closer financial monitoring and strategic action. Strengthening capital and improving financial transparency will be key to sustaining long-term financial health.

ALG MANAGEMENT SOLUTIONS LIMITED - Analysis Report

Company Number: 12842092

Analysis Date: 2025-07-19 12:32 UTC

Financial Health Assessment Report for ALG MANAGEMENT SOLUTIONS LIMITED

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1. Financial Health Score: C

Explanation:
The company shows a stable but declining financial position with sufficient working capital and positive net assets. However, the trend of decreasing net assets and current assets over recent years signals some caution. The absence of audit or detailed profit and loss disclosures limits deeper insight. Overall, the company's financial "vital signs" suggest a moderate level of financial health, but with symptoms indicating potential distress if current trends continue.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	5,841	Very low fixed asset base; typical for micro entities.
Current Assets	25,059	Adequate short-term resources, though declining from £38k in 2023.
Current Liabilities	4,904	Manageable short-term obligations; reduced from prior year.
Net Current Assets (Working Capital)	20,155	Healthy buffer indicating good liquidity.
Net Assets (Equity)	24,916	Positive equity but declining from £35,770 in 2023.
Share Capital	1.00	Minimal share capital, common in small private companies.
Employees	0	No employees reported in 2024, could imply outsourcing or low activity.
Company Status	Active	Operating normally without liquidation or administration.

Interpretation of Vital Signs:

• Liquidity: The net current assets of £20k suggest the company can comfortably meet its short-term debts, akin to a patient with a steady pulse and good blood pressure.
• Solvency: Positive net assets indicate the company’s "heart" is still strong, but the decline from £35k to £25k indicates some weakening muscle tone.
• Asset Base: Fixed assets are minimal, consistent with a consultancy or services company with limited physical capital.
• Activity Level: Zero employees and a drop in current assets may be symptoms of reduced operational activity or a shift in business model.
• Reporting: Use of micro-entity accounting and absence of detailed profit and loss statements limits full diagnosis, like missing some vital signs in a health check.

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3. Diagnosis

Overall Financial Condition:
ALG MANAGEMENT SOLUTIONS LIMITED appears financially solvent and liquid at present, with no immediate signs of distress such as negative equity or inability to pay short-term creditors. However, the year-on-year decline in net assets and current assets, combined with zero employees reported in the latest year, raises concerns about the company's growth, operational scale, and possibly profitability.

The company operates in management consultancy and computer facilities management—industries which can operate with minimal fixed assets but require consistent revenue generation to maintain finances. The decline in assets could signal reduced revenue or increased expenses not reflected in the data due to micro-entity reporting exemptions.

Risk Factors:

• Declining equity and working capital could be early symptoms of financial stress if not addressed.
• Lack of employees suggests possible reliance on contractors or minimal operational activity, which could impact revenue stability.
• Minimal share capital and sole control by one individual (Mr Austin Luke Gibbons) concentrate financial and managerial risk.

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4. Recommendations

1. Enhance Financial Monitoring:
   Introduce more detailed internal financial tracking beyond micro-entity filings to spot adverse trends earlier, like monitoring cash flow monthly to ensure "healthy circulation."

2. Review Operational Structure:
   Evaluate the business model, especially workforce and revenue streams. If zero employees reflect outsourcing, ensure contracts and payments are sustainable.

3. Strengthen Capital Base:
   Consider injecting additional equity or retaining earnings to rebuild net assets and provide a stronger financial cushion.

4. Profitability Focus:
   Since profit and loss data is not publicly available, internally assess profitability and cost control to reverse declining asset trends.

5. Contingency Planning:
   Develop a financial contingency plan to manage potential downturns, akin to having emergency protocols in healthcare.

6. Engage Professional Advice:
   Seek professional accounting or financial advice to improve reporting standards, which will enhance transparency and may ease access to finance if needed.

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