Company Number: 14597165

Analysis Date: 2025-07-20 17:16 UTC

Financial Health Assessment of ALL LEVEL LIFTS LIMITED

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1. Financial Health Score: C (Fair)

Explanation:
ALL LEVEL LIFTS LIMITED, as a micro-entity incorporated recently in 2023, shows a modest financial position after its first year. The company maintains positive net assets and shareholders’ funds but exhibits signs of working capital strain and reliance on longer-term creditors. This suggests the business is still in early development with some liquidity challenges that are not uncommon for startups. The "C" grade reflects a fair but cautious outlook—healthy foundation but symptoms that require monitoring and improvement.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Fixed Assets	59,023	Investment in long-term lifting equipment assets.
Current Assets	11,127	Short-term liquid resources including cash and receivables.
Current Liabilities	(14,804)	Debts due within one year; slightly exceeding current assets.
Net Current Assets	(3,677)	Negative working capital indicates short-term liquidity risk.
Creditors > 1 year	(31,431)	Significant long-term debts affecting financial flexibility.
Net Assets	23,915	Positive equity showing that assets exceed liabilities.
Employees	1	Very small workforce consistent with micro-entity status.

Interpretation of Vital Signs:

• Working Capital Deficit: The company’s current liabilities exceed its current assets, indicating a "symptom of distress" in liquidity — the business may struggle to meet short-term obligations if cash inflows do not improve.
• Long-term Debt Load: The company carries substantial amounts of creditors due after one year, which could indicate loans or finance agreements. While manageable, this long-term liability places pressure on future cash flows.
• Positive Net Assets: Despite short-term challenges, the company’s net assets and shareholders’ funds are positive, reflecting that the business is not insolvent and has a tangible asset base.
• Early Stage: Small employee count and recent incorporation reflect a business in its infancy phase, likely still investing in growth and operational setup.

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3. Diagnosis:

Overall Condition:
ALL LEVEL LIFTS LIMITED is at an early stage of its business lifecycle, showing foundational "health" through positive equity and investment in fixed assets critical to its manufacturing activities. However, the negative working capital is a cautionary "symptom" indicating the company might face short-term liquidity pressures, potentially due to timing mismatches in cash inflows and outflows or investment in growth before sales have ramped up.

The reliance on long-term creditors suggests the company has financed its asset base primarily through debt, a common approach for new manufacturers. This leverage must be managed carefully to avoid financial strain as the company scales operations.

No audit requirement and small size:
The company has taken advantage of micro-entity accounting provisions, simplifying reporting but also limiting detailed financial disclosures like profit and loss accounts, which restricts a deeper profitability analysis.

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4. Recommendations:

To improve financial wellness and ensure sustainable growth, the company should:

• Enhance Cash Flow Management:
  Implement tighter control over receivables and payables to improve working capital. Consider negotiating longer payment terms with suppliers or faster collection from customers if possible. Aim to move from negative to positive net current assets to ensure "healthy cash flow."

• Monitor Debt Servicing:
  Keep regular track of long-term creditors and plan cash flows to meet debt repayments without stress. Explore refinancing options if interest rates or terms are unfavorable.

• Develop a Profit & Loss Tracking System:
  Even though not legally required to file, internally tracking profitability and cost structures will help identify early financial "symptoms" such as declining margins or rising expenses.

• Strategic Growth Planning:
  Align asset acquisitions and hiring with realistic sales forecasts to avoid overextension. Given the micro-entity status and small workforce, scaling cautiously is prudent.

• Prepare for Next Filing and Compliance:
  Ensure timely submission of accounts and confirmation statements to maintain good standing and avoid penalties.

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