AMPLIFY BUSINESS SUPPORT LTD

Executive Summary

AMPLIFY BUSINESS SUPPORT LTD has shown a positive turnaround from previous financial challenges, with improved liquidity and net assets marginally above zero. However, the company remains in a fragile state due to its minimal equity base and significant provisions for liabilities. Focused efforts on strengthening equity, managing liabilities, and maintaining cash flow are essential for ensuring long-term financial wellness.

AMPLIFY BUSINESS SUPPORT LTD - Analysis Report

Company Number: 12789257

Analysis Date: 2025-07-20 15:46 UTC

Financial Health Assessment for AMPLIFY BUSINESS SUPPORT LTD

---

1. Financial Health Score: C

Explanation:
The company shows signs of recovery and stabilization after prior periods of financial distress, reflected in its positive net assets and net current assets in the latest financial year. However, the very low net asset base (£20) and relatively high provisions compared to total assets indicate fragile financial health. This score reflects a company that is currently surviving but remains vulnerable to external shocks or operational setbacks.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets	£20	Barely positive equity; indicates minimal buffer against liabilities; borderline solvency.
Net Current Assets	£19,500	Healthy working capital position; good short-term liquidity and ability to meet debts.
Fixed Assets	£1,575	Small investment in long-term assets; typical for micro-sized business.
Current Liabilities	£2,793	Manageable short-term debts.
Provisions for Liabilities	£20,015	Large provisions relative to net assets; potential contingent liabilities or expected costs.
Shareholders' Funds	£20	Reflects minimal retained profits or capital invested; very thin equity base.
Trend in Net Assets	Improved from negative in prior years to positive	Indicates turnaround from previous financial distress.

---

3. Diagnosis: Financial Condition Analysis

• Vital Signs Overview:
  The company’s net current assets of £19,500 suggest a "healthy cash flow" situation for day-to-day operations. This implies the company is able to cover its short-term obligations comfortably, which is a positive symptom.

• Symptoms of Past Distress:
  Historical data indicate the company struggled with negative equity and higher liabilities in previous years (e.g., 2023 net liabilities of over £16k). The recent improvement to slightly positive net assets suggests successful restructuring or operational improvements.

• Current Risks:
  Despite improved liquidity, the net asset value is extremely low at £20, which is "a fragile pulse" indicating the company’s equity cushion is very thin. The large provisions for liabilities (£20,015) may represent future costs or risks that could deteriorate financial health if realised.

• Operational Health:
  The company employs zero staff on average, which may indicate a lean operation or reliance on contractors/freelancers. This could limit scalability but also reduces fixed overheads.

• Sector Context:
  Operating in "Other business support service activities," a sector often sensitive to economic cycles, the company’s current small size (micro entity) and financial profile require careful cash flow management.

---

4. Recommendations

• Strengthen Equity Base:
  Consider capital injections or retaining earnings to build a more substantial equity buffer, reducing vulnerability from the "symptoms of financial fatigue."

• Manage Provisions:
  Conduct a detailed review of the provisions for liabilities to understand their nature and likelihood. If possible, negotiate or mitigate these liabilities to avoid sudden financial shocks.

• Maintain Strong Working Capital:
  Continue to monitor and manage current assets and liabilities to sustain the "healthy cash flow" vital for operational stability.

• Explore Growth Opportunities:
  Although currently micro-sized, incremental growth could improve financial resilience. This could include service diversification or client base expansion.

• Regular Financial Monitoring:
  Implement periodic financial health checks to detect early signs of distress and manage them proactively.

---