AMCS POOLE LIMITED

Executive Summary

AMCS POOLE LIMITED exhibits stable financial health with positive net assets and working capital, indicating sound short-term liquidity. However, declines in fixed assets and staffing levels signal caution, suggesting the need for strategic reinvestment and business development to sustain long-term viability. Proactive financial and operational management will be key to maintaining and improving the company's financial wellness.

AMCS POOLE LIMITED - Analysis Report

Company Number: 13279990

Analysis Date: 2025-07-29 14:05 UTC

Financial Health Assessment Report for AMCS POOLE LIMITED

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1. Financial Health Score: B-

Explanation: AMCS Poole Limited demonstrates a generally stable financial position with positive net assets and working capital, indicating a baseline of financial health suitable for a micro-entity. However, recent declines in fixed assets and net assets, coupled with a reduction in staff numbers, suggest emerging strains on operational capacity and asset base. The company is not showing signs of distress, but vigilance and proactive management are warranted to prevent deterioration.

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2. Key Vital Signs

• Net Assets (Shareholders' Funds): £12,453 as of 31 March 2024 (down from £14,372 in 2023).
  Interpretation: The company retains positive equity, indicating it owns more than it owes. The decrease signals some erosion of retained value, possibly from operational losses or asset depreciation.

• Current Assets: £50,284 (2024) vs £52,149 (2023)
  Interpretation: Liquid resources and receivables have slightly decreased but remain sufficient to cover short-term obligations.

• Current Liabilities: £44,236 (2024) vs £47,528 (2023)
  Interpretation: Short-term debts have decreased slightly, which is positive. The company maintains net current assets (working capital) of £6,048 (2024), a healthy buffer for day-to-day operations.

• Net Current Assets: £6,048 (2024) vs £4,962 (2023)
  Interpretation: Indicates improved liquidity margin, a good sign of financial flexibility to meet immediate liabilities.

• Fixed Assets: £10,305 (2024) vs £13,410 (2023)
  Interpretation: Reduction in long-term assets may reflect asset disposals, depreciation, or lack of reinvestment, which could impact operational capacity in the medium term.

• Staff Numbers: Average 9 (2024) down from 13 (2023)
  Interpretation: A reduction in workforce may indicate cost-cutting measures or lower business activity, which could impact revenue generation.

• Share Capital: £100
  Interpretation: Minimal capital injection, typical for micro-entities, not a concern but highlights reliance on operational cash flow for funding.

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3. Diagnosis: What the Financial Data Reveals About Business Health

AMCS Poole Limited is currently in a stable but cautious financial state. The company's balance sheet shows positive equity and a healthy margin of net current assets, akin to a patient with stable vital signs but some mild symptoms requiring attention.

The decline in fixed assets and net assets resembles a gradual weakening of the business's "structural strength," possibly due to asset wear and tear or lack of reinvestment. The reduced staff count may reflect operational scaling back, which could be a defensive response to reduced demand or financial pressures.

The company’s liquidity (net current assets) is adequate, suggesting it can meet short-term obligations without distress — a "healthy cash flow" symptom. However, the downward trends in some areas could be early "symptoms of distress" if not addressed.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Asset Management: Assess reasons for fixed asset reductions. Consider reinvesting in essential equipment to maintain operational efficiency and service quality.

• Revenue and Cost Analysis: Investigate the cause of staff reductions. If due to lower demand, explore business development initiatives to increase sales. If cost-saving, ensure it does not impair service delivery.

• Cash Flow Monitoring: Maintain close oversight on cash inflows and outflows. Establish a rolling cash flow forecast to anticipate liquidity needs, ensuring continued healthy working capital.

• Capital Structure Review: Although share capital is minimal, the company should consider if additional funding (e.g., shareholder loans or equity injection) is needed to support growth or stabilize operations.

• Strategic Planning: Develop a medium-term business strategy focusing on growth opportunities within the cleaning sector, possibly diversifying services or targeting niche markets to enhance revenue resilience.

• Compliance and Reporting: Continue timely filings and maintain transparency with stakeholders to avoid penalties and preserve corporate reputation.

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