AMY OLIVIA LTD

Executive Summary

AMY OLIVIA LTD demonstrates improving liquidity and sufficient working capital, but a significant increase in liabilities provisions signals emerging financial risks. The company’s net asset base is minimal, indicating fragile financial health requiring careful management. Strengthening equity and addressing provisions will be key to ensuring future stability and growth.

AMY OLIVIA LTD - Analysis Report

Company Number: 14679404

Analysis Date: 2025-07-29 13:03 UTC

Financial Health Assessment for AMY OLIVIA LTD

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1. Financial Health Score: C

Explanation:
AMY OLIVIA LTD is a newly incorporated micro-entity (since February 2023) operating in the hairdressing and beauty treatment sector. Its financials show a positive but very modest net asset base (£99) and small but increasing current assets. The company is in the early stages of its financial life, showing some growth in working capital but also exhibiting signs of financial strain due to material provisions for liabilities. The score reflects a cautious outlook—while not in distress, the company’s financial position is fragile and requires close monitoring and management.

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2. Key Vital Signs

Metric	2025 Value	Interpretation
Current Assets	£6,490	Healthy increase from £1,428 in 2024, indicating improved liquidity and cash or receivables.
Current Liabilities	£108	Very low current liabilities, positive for short-term solvency.
Net Current Assets	£6,382	Strong working capital position, indicating the company can meet short-term obligations easily.
Provisions for Liabilities	£5,634	Significant increase from £699 in 2024; suggests earmarked funds for potential future expenses or risks, which is a red flag.
Accruals and Deferred Income	£650	Stable; reflects liabilities that will arise or income received in advance.
Net Assets / Shareholders’ Funds	£99	Very low equity base, close to break-even; suggests fragile net worth.
Employees	1	Small workforce, consistent with micro-entity classification.

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3. Diagnosis

The financial "vital signs" suggest AMY OLIVIA LTD is in an early developmental phase with modest but improving liquidity (current assets rising from £1,428 to £6,490). The company has a positive working capital balance, which is a healthy sign that it can cover its short-term debts.

However, the large increase in provisions for liabilities from £699 to £5,634 is a symptom of potential financial distress or uncertainty. Provisions are amounts set aside for known or estimated future liabilities; such a jump may indicate risks like pending claims, warranty costs, or other contingent liabilities that could impact future cash flows.

The net asset position is barely positive (£99), indicating minimal cushion against losses. This thin equity base is typical for a new micro-entity but raises caution about sustainability if adverse events arise.

The business is owner-operated by Miss Amy Hayden, who holds full control and voting rights, which can allow for agile decision-making but also concentrates risk in one person’s management.

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4. Recommendations

• Investigate and Manage Provisions: Understand the nature of the large provisions increase. If possible, seek to resolve or mitigate the underlying causes to prevent unexpected cash outflows.

• Strengthen Equity Base: Consider capital injections or retaining profits to build a stronger equity buffer. This will improve financial resilience.

• Cash Flow Monitoring: Maintain rigorous cash flow management given the company's modest net assets. Ensure liquidity remains sufficient to cover liabilities.

• Cost Control & Revenue Growth: Focus on increasing revenues and controlling costs to improve profitability and build retained earnings.

• Regular Financial Reviews: Given the fragile net asset position and provisions, conduct frequent financial health checks to detect early signs of distress.

• Consider Professional Advice: As the business grows, consulting financial and legal advisors can help manage risks tied to provisions and compliance.

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Medical Analogy Summary

AMY OLIVIA LTD currently shows healthy cash flow and working capital, akin to a patient with stable vital signs. However, the significant jump in provisions acts like an emerging symptom of internal stress or potential illness, which needs diagnosis and management to prevent deterioration. The company's financial "immune system" (equity) is weak, so strengthening it is critical to maintain overall health and prevent financial shock.

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