ALLAN ALEXANDER CHARTERED ARCHITECTURAL TECHNOLOGIST LLP

Executive Summary

ALLAN ALEXANDER CHARTERED ARCHITECTURAL TECHNOLOGIST LLP is a young LLP with a solid asset base but experiencing ongoing negative working capital, signaling tight liquidity and cash flow management challenges. While currently stable with positive net assets supported by members’ loans, the company must focus on improving cash flow, strengthening working capital, and growing revenues to secure a healthier financial future. Proactive financial monitoring and operational adjustments will be key to transitioning from early-stage fragility to sustainable health.

ALLAN ALEXANDER CHARTERED ARCHITECTURAL TECHNOLOGIST LLP - Analysis Report

Company Number: SO307884

Analysis Date: 2025-07-07 22:39 UTC

Financial Health Assessment: ALLAN ALEXANDER CHARTERED ARCHITECTURAL TECHNOLOGIST LLP

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1. Financial Health Score: C

Explanation:
The company shows early-stage financial characteristics typical of a new and small LLP, with modest tangible assets but persistent net current liabilities, indicating working capital constraints. While it is not in immediate distress, the negative working capital and reliance on member loans suggest it is in a fragile state, requiring careful management to build a healthier financial footing.

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2. Key Vital Signs

Metric	Value (31-Mar-2025)	Interpretation
Fixed Assets (Tangible)	£18,120	Moderate investment in long-term assets, showing some capital commitment.
Current Assets (Debtors)	£4,322	Low short-term assets; some receivables present, but limited liquidity buffer.
Current Liabilities	£11,045	Short-term obligations exceed current assets, a potential liquidity squeeze.
Net Current Assets (Working Capital)	-£6,723	Negative working capital ("symptom of financial tightness"), indicating cash flow pressure.
Net Assets	£11,397	Positive net assets owed to members, showing that the LLP's overall asset base exceeds liabilities.
Employees	Nil	No employees, suggesting low operational costs but also limited capacity for growth.
Accounting Reference Date	31 March	Standard year-end date, current accounts filed on time, indicating compliance.
LLP Members' Loans	£11,397	Members have provided loans to support operations—a sign of internal funding reliance.

Interpretation of Vital Signs:

• The LLP has tangible assets but insufficient short-term assets to cover its liabilities, resulting in persistent negative working capital.
• The company's liquidity position is weak, a "symptom" that cash flow management needs attention.
• Positive net assets reflect that, despite short-term challenges, the LLP's overall financial position is supported by members' loans and capital.
• Absence of employees keeps overheads low but may limit operational scale and revenue growth potential.

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3. Diagnosis: Financial Condition Assessment

The LLP is in its infancy, incorporated in late 2023, and shows the typical "early-stage financial profile" of a small architectural technology firm. The "healthy" aspect is the presence of tangible assets and positive net equity attributable to members, indicating that the business has a foundational capital base.

However, the "symptoms of distress" are evident in the negative working capital across multiple years (£6,723 deficit in 2025, £10,452 in 2024), which means the company’s short-term obligations exceed its liquid assets. This imbalance suggests potential cash flow difficulties that could impact the LLP's ability to meet immediate financial commitments without additional funding.

The LLP is reliant on loans from its members to sustain operations, which is common for new small businesses but not sustainable long-term without improvement in cash inflows or reduction of liabilities.

No employees indicate a lean operational model but may also reflect limited business activity or growth potential at this stage.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Improve Cash Flow Management:

   • Accelerate debtor collection processes to turn receivables into cash more quickly.
   • Negotiate extended payment terms with creditors to reduce immediate cash outflows.
   • Monitor cash flow forecasts regularly to anticipate shortfalls and plan accordingly.

2. Strengthen Working Capital:

   • Consider converting some members' loans into equity to improve the balance sheet and reduce financial risk.
   • Explore short-term financing options with favorable terms if cash flow pressure persists.

3. Revenue Growth and Diversification:

   • Expand client base and project portfolio to increase turnover and generate more cash inflows.
   • Utilize the firm's CAD and 3D expertise as highlighted on the website to target higher-value contracts.

4. Cost Control and Operational Efficiency:

   • Maintain the lean structure but assess if strategic hires or partnerships could enhance service offerings and revenue.

5. Regular Financial Monitoring:

   • Establish routine financial health checks, akin to medical check-ups, to catch early signs of distress and respond swiftly.

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