AMB-KELSO LIMITED

Executive Summary

AMB-KELSO LIMITED demonstrates a stable financial position with strong cash reserves and positive net assets, indicative of good liquidity and solvency. However, a recent decline in working capital and equity signals emerging liquidity tightening that should be addressed through improved cash flow management and cost controls. Proactive monitoring and strategic financial planning will support continued financial wellness and business resilience.

AMB-KELSO LIMITED - Analysis Report

Company Number: 13099930

Analysis Date: 2025-07-29 20:17 UTC

Financial Health Assessment of AMB-KELSO LIMITED

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1. Financial Health Score: B

Explanation:
AMB-KELSO LIMITED shows solid financial footing with positive net assets, a healthy cash reserve, and consistent working capital over recent years. However, there is a noticeable decline in net assets and net current assets in the latest year, signaling some emerging pressure on liquidity or profitability. The company is not in distress, but the downward trend warrants attention to prevent symptoms from worsening.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Cash & Cash Equivalents	79,630	A strong cash position indicating healthy liquidity—akin to a patient with good hydration.
Debtors	10,921	Moderate receivables suggesting decent collection efficiency; watch for aging debts.
Current Liabilities	45,861	Rising current liabilities compared to prior year; potential short-term strain on resources.
Net Current Assets (Working Capital)	44,690	Positive working capital, but decreased from £53,617 last year; a symptom of tightening liquidity.
Net Assets (Shareholder Funds)	46,674	Positive equity base but reduced by ~16% from prior year (£55,530), indicating some retained earnings erosion.
Tangible Fixed Assets	1,984	Small fixed asset base, consistent with a service-oriented business, showing modest investment.
Share Capital	100	Minimal share capital, typical for a small private limited company.

Additional Observations:

• The company has maintained compliance with filing deadlines and is classified as a small company under UK regulations.
• The single director is also the office manager, suggesting a closely-held, owner-managed entity.
• No audit required, and accounts prepared under FRS 102 Section 1A (small companies) reflecting simpler reporting.

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3. Diagnosis

AMB-KELSO LIMITED currently enjoys a "healthy cash flow" with a substantial cash reserve relative to liabilities. The business shows no immediate signs of financial distress such as negative working capital or net liabilities. However, the decline in net current assets and net assets points to underlying "symptoms of distress," possibly from increased short-term obligations or lower profitability.

The rise in current liabilities (from £31,965 in 2023 to £45,861 in 2024) without a proportional increase in current assets suggests tightening liquidity. This could be due to increased operational costs, delayed payments by customers, or accrual of taxes and other creditors.

The company remains solvent with positive shareholder equity, indicating the financial "vital signs" are stable but warrant monitoring. The small asset base and reliance on cash and receivables are typical for service businesses but highlight the importance of working capital management.

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4. Recommendations

• Improve Working Capital Management:
  Focus on accelerating debtor collections and negotiating better payment terms with creditors to ease short-term cash flow pressure.

• Cost Control:
  Review operational expenses to identify any increases contributing to the rise in current liabilities and overall reduction in retained earnings.

• Cash Flow Forecasting:
  Implement regular cash flow forecasting to anticipate liquidity needs and avoid surprises that could lead to financial strain.

• Profitability Analysis:
  Since detailed profit and loss figures are not filed, internally review margins and revenue trends to detect any decline impacting retained earnings.

• Consider Equity Injection or Loan Facilities:
  If working capital constraints persist, exploring additional funding sources may provide a financial buffer and support growth.

• Maintain Compliance and Governance:
  Continue timely filings and consider formal financial reviews or audits if the company grows or faces more complex financial situations.

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