ALYS MORRISON LTD

Executive Summary

ALYS MORRISON LTD is demonstrating solid financial health characterized by strong asset growth and positive equity in its early years. While the company shows a healthy working capital position, the reduction in cash balances suggests the need for enhanced cash flow management to maintain liquidity. With prudent financial controls and strategic planning, the company is well-positioned for sustainable growth in the photographic services sector.

ALYS MORRISON LTD - Analysis Report

Company Number: 14615776

Analysis Date: 2025-07-29 17:15 UTC

Financial Health Assessment: ALYS MORRISON LTD

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1. Financial Health Score: B

Explanation:
ALYS MORRISON LTD demonstrates a strong and growing financial position in its early years of operation. The company shows healthy net assets, positive working capital, and increasing shareholders’ funds, which are all vital signs of good financial health. However, some caution is advised due to the company's recent establishment (2023) and fluctuations in cash balances, which could indicate early-stage liquidity management challenges. Overall, the financial system is stable, but continuous monitoring and cash flow management are recommended to maintain robust health.

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2. Key Vital Signs

Metric	2025 (£)	2024 (£)	Interpretation
Fixed Assets	118,095	17,644	Significant increase due to investments; shows asset growth and capital deployment.
Current Assets	94,812	149,029	Decline mainly from reduced cash; could indicate cash outflows or investment.
Cash	47,520	98,278	Reduced cash balance suggests cash is being used, possibly for investments or expenses.
Debtors	47,292	50,751	Stable receivables, indicating consistent customer payments or billing.
Current Liabilities	49,167	64,501	Decrease in short-term obligations, easing liquidity pressure.
Net Current Assets	45,645	84,528	Positive working capital, but reduced; company can cover short-term debts.
Total Assets less Curr. Liab	163,740	102,172	Significant increase indicating overall asset and equity growth.
Shareholders’ Funds	163,740	102,172	Increased retained earnings and equity; strong ownership position.
Employee Count	1	1	Small, focused operation consistent with micro/small company profile.

Interpretation:

• The company’s net assets and equity base have grown strongly, signaling profitable reinvestment or capital injection.
• Despite a healthy current ratio (current assets > current liabilities), the cash reduction is a symptom that cash flow management needs careful attention to avoid liquidity strain.
• Presence of fixed asset investments suggests strategic asset acquisition or capital deployment to support growth.
• The small employee base aligns with the company’s micro/small size and specialized industry (photographic activities).

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3. Diagnosis

ALYS MORRISON LTD exhibits symptoms of a healthy early-stage business with solid asset growth and strong equity. The financial "pulse" shows a company investing in its fixed assets and expanding its capital base, likely positioning for future growth. The decrease in cash reserves is a common "symptom" in growing companies, reflecting investment or operational outflows, but remains above current liabilities, maintaining a safe liquidity margin.

The working capital remains positive, indicating the company can meet short-term obligations without distress. However, the drop in current assets and cash signals a need to monitor cash inflows carefully, ensuring receivables are collected promptly and expenditures are managed prudently.

The company’s single director and sole shareholder control suggest simplified governance but may limit external oversight or access to wider capital sources.

Overall, the diagnosis is that ALYS MORRISON LTD is financially stable, with strong equity and asset growth, but should remain vigilant on cash flow management to avoid liquidity stress as it scales.

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4. Recommendations

• Improve Cash Flow Monitoring: Implement rigorous cash flow forecasting and management to detect and address potential shortfalls early, ensuring the company maintains a "healthy cash flow" and sufficient liquidity reserves.
• Manage Receivables Efficiently: Strengthen debtor controls to maintain or improve the collection period, reducing the risk of cash flow delays.
• Review Investment Strategy: Regularly assess the return on fixed asset investments to ensure they contribute positively to profitability and do not tie up excessive capital.
• Consider Growth Financing: If expansion is planned, evaluate options for external finance to support working capital and asset acquisition without stressing cash reserves.
• Maintain Compliance and Reporting: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Governance: As a single director/shareholder company, consider advisory support to enhance strategic decision-making and risk management.
• Prepare for Scalability: Plan operational scalability considering employee needs and administrative capacity to sustain growth without operational bottlenecks.

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