ALL ASPECTS ENGINEERING LTD

Executive Summary

All Aspects Engineering Ltd shows foundational financial stability with positive net assets but faces liquidity challenges evidenced by negative working capital. Immediate focus on cash flow management and cost control is crucial to prevent operational strain. With proactive financial management and possible capital support, the company’s outlook can improve, restoring healthier financial vitality.

ALL ASPECTS ENGINEERING LTD - Analysis Report

Company Number: 14193244

Analysis Date: 2025-07-29 15:56 UTC

Financial Health Assessment for All Aspects Engineering Ltd as at 30 June 2024

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1. Financial Health Score: C

• Explanation:
  The company demonstrates some foundational strength with positive net assets and shareholder funds, but there are clear symptoms of financial strain, particularly in liquidity and working capital management. The drop in net current assets into negative territory is a warning sign that requires attention to avoid potential cash flow distress.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	4,114	3,505	Slight increase indicating modest investment in long-term resources. Healthy sign of asset growth.
Current Assets	7,546	3,896	Significant increase, possibly from cash or receivables; generally positive but must be monitored for quality.
Current Liabilities	8,855	3,654	More than doubled, indicating increased short-term obligations; a potential liquidity red flag.
Net Current Assets (Working Capital)	-1,309	242	Shift from positive to negative working capital is a major symptom of liquidity stress—company may struggle to cover short-term debts.
Total Assets Less Current Liabilities	2,805	3,747	Decline indicates a reduction in asset buffer after covering short-term liabilities; caution needed.
Net Assets / Shareholders Funds	1,800	2,824	Decreasing equity base, potentially signaling accumulated losses or capital withdrawals.

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3. Diagnosis: Financial Condition Overview

• Liquidity Challenges:
  The transition from positive working capital (£242) in 2023 to negative (£-1,309) in 2024 is a critical symptom indicating the company could face difficulties meeting short-term obligations without additional financing or operational improvements. This "cash flow distress" can constrain day-to-day operations and supplier relationships.

• Asset and Equity Position:
  Although fixed assets have grown modestly, the net assets and shareholders' funds have declined by approximately 36%. This reduction may imply operational losses or capital withdrawal. The company remains solvent but with a thinner equity cushion, likened to a patient whose immune system is weakened but still functional.

• Operational Scale and Risk:
  As a micro-entity with only one employee (likely the director), the company has limited resources to absorb shocks. The concentration of control and ownership in one individual (75-100% shareholding by Arron William James) suggests decisions are centralized, which can be efficient but also risks lack of oversight.

• Compliance and Governance:
  No overdue filings or status issues are present, suggesting good compliance health—akin to a patient attending regular check-ups.

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4. Recommendations: Path to Financial Wellness

• Improve Liquidity Management:

  • Tighten credit control to accelerate receivables collection and reduce outstanding debts owed to the company.
  • Negotiate longer payment terms with suppliers to better align cash outflows with inflows.
  • Consider short-term financing options to ease working capital pressure if necessary.

• Cost Control and Profitability Review:

  • Analyze operational expenses to identify and cut non-essential costs.
  • Review pricing strategies and contract terms to improve margins.

• Capital Injection or Retained Earnings:

  • Explore options for additional equity investment or shareholder loans to strengthen net assets.
  • Focus on building retained profits by improving operational efficiency.

• Regular Financial Monitoring:

  • Implement monthly cash flow forecasting and management reports to catch symptoms of financial distress early.
  • Engage with a financial advisor to review strategic plans and risk management.

• Governance and Transparency:

  • Although the company is small and owner-managed, consider periodic external reviews to provide objective financial health assessments and reduce risk of oversight.

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