ALWOODLEY BUILDING AND DEVELOPMENTS LTD

Executive Summary

ALWOODLEY BUILDING AND DEVELOPMENTS LTD demonstrates a strong liquidity position and stable financial footing for a newly formed micro company. The positive working capital and shareholder funds indicate a healthy financial "heartbeat," though limited operational data constrains a full profitability assessment. Continued focus on cash flow management, transparency, and risk diversification will support sustainable growth and financial wellness.

ALWOODLEY BUILDING AND DEVELOPMENTS LTD - Analysis Report

Company Number: 14356858

Analysis Date: 2025-07-29 12:18 UTC

Financial Health Assessment: ALWOODLEY BUILDING AND DEVELOPMENTS LTD

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1. Financial Health Score: B

Explanation:
Given that ALWOODLEY BUILDING AND DEVELOPMENTS LTD is a newly incorporated company (less than two years old) operating in the building completion and finishing industry, its financial health appears solid for this early stage. The company shows a healthy positive net current asset position and strong shareholder funds relative to its size. However, the limited financial history and lack of turnover or profit & loss details (due to exemption filings) restrict a full assessment, preventing an A grade. The B rating reflects a stable early-stage condition with good liquidity but emphasizes the need for ongoing monitoring.

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2. Key Vital Signs

Vital Sign	Value (£)	Interpretation
Current Assets	51,863	Indicates short-term resources available; includes cash and receivables; a healthy level.
Cash	29,403	Strong cash position for a start-up; ensures capacity to meet immediate expenses and liabilities.
Debtors	22,460	Amount owed to the company, showing active business dealings; manageable in size.
Current Liabilities	11,989	Obligations due within one year; relatively low compared to current assets.
Net Current Assets (Working Capital)	39,874	Positive working capital implies liquidity and ability to cover short-term debts comfortably.
Shareholders’ Funds (Equity)	39,874	Reflects the net value owned by shareholders; solid foundation given company’s age and size.
Number of Employees	1	Very small operation; low overhead but limited human resources.

Interpretation of Vital Signs:
The “vital signs” of the company’s balance sheet show a healthy cash flow “heartbeat” with sufficient liquidity (“healthy cash flow pulse”) to meet short-term obligations. The positive net current assets indicate no immediate liquidity distress. The equity base is consistent with initial capital and some retained earnings, giving a stable financial “body structure” for growth.

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3. Diagnosis: Financial Condition Overview

• Liquidity & Solvency: The company exhibits strong liquidity with cash comprising over half of current assets and net current assets well above current liabilities. There are no signs of financial distress or over-leverage. This is a key “symptom” suggesting the company is in a solvent and stable condition.

• Capital Structure: Ownership is fully concentrated with the founder-director, which simplifies control but may limit access to broader capital. The capital structure is typical for a micro private limited company at start-up phase, showing a “healthy skeletal frame” for future operations.

• Profitability & Growth: Profit and loss details are not available due to small company exemption. This limits insight into operational profitability and cash generation beyond balance sheet data. However, the presence of debtors indicates business activity and revenue generation underway.

• Operational Scale & Risk: The company is a micro entity with only one employee, which can imply operational simplicity and low fixed costs but also potential vulnerability to single-person dependency risks.

• Compliance & Governance: No overdue filings and a clean director appointment record reflect good corporate governance and regulatory compliance, supporting a strong “immune system” against legal or compliance risks.

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4. Recommendations: Actions to Improve Financial Wellness

1. Maintain Strong Cash Flow Management:
   Continue monitoring cash inflows and outflows carefully. Ensure timely collection of debts to sustain liquidity and avoid cash flow stress (“avoid symptoms of financial dehydration”).

2. Build Operating History & Profitability Transparency:
   As the company matures, consider moving beyond exemption filings to provide fuller financial statements including profit and loss data. This will enhance stakeholder confidence and support strategic decision-making.

3. Diversify Funding Sources:
   Explore options for additional capital injection or credit facilities to support growth initiatives and mitigate founder concentration risk, akin to strengthening the “financial immune system” with diversified inputs.

4. Risk Management & Succession Planning:
   Given the micro size and single employee/director structure, implement contingency plans for key-person risk to ensure operational continuity (“strengthening the company’s vital organs”).

5. Growth & Scaling:
   Monitor industry trends and business opportunities to scale operations prudently. Maintain working capital at levels that support expansion without overextending liabilities.

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