ANDREW CASH ASSOCIATES LIMITED

Executive Summary

Andrew Cash Associates Limited exhibits strong financial health with robust cash reserves and positive net assets, marking a solid foundation for a small consultancy business. Key financial metrics indicate good liquidity and stability, though rising short-term liabilities warrant careful cash flow management. With prudent oversight and strategic planning, the company is well-positioned for sustainable growth.

ANDREW CASH ASSOCIATES LIMITED - Analysis Report

Company Number: 13026691

Analysis Date: 2025-07-20 14:30 UTC

Financial Health Assessment for ANDREW CASH ASSOCIATES LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates a generally healthy financial position with solid liquidity and positive net assets, reflecting good financial resilience for its size and stage of development. However, some signs suggest cautious monitoring of cash flow and liabilities is recommended to maintain this health grade.

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2. Key Vital Signs:

Metric	2024 Value	Interpretation
Current Assets	£78,697	Strong short-term asset base, primarily cash, indicating good liquidity.
Cash Balance	£78,282	Very healthy cash reserves relative to liabilities, a "healthy pulse" for operational flexibility.
Debtors	£415	Minimal receivables, suggesting efficient collection or low credit sales.
Current Liabilities	£8,475	Manageable short-term obligations; increased from prior year but still low relative to cash.
Net Current Assets (Working Capital)	£70,222	Positive working capital, a sign of financial stability and "good circulation" of resources.
Shareholders' Funds (Equity)	£76,144	Solid equity base, indicating net worth is positive and growing.
Tangible Fixed Assets	£5,922	Modest investment in long-term assets, appropriate for a consultancy business.
Employee Count	NIL	No employees, indicating low overhead and potentially low operating costs.

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3. Diagnosis:

The company is exhibiting strong liquidity, with cash reserves far exceeding immediate liabilities—akin to a patient with a strong heartbeat and ample oxygen supply. Net current assets and shareholders' funds have increased steadily over recent years, reflecting retained earnings and a growing equity cushion.

The business operates in management consultancy (SIC 70229), which typically requires limited fixed assets and benefits from low capital expenditure, consistent with the company's financial structure.

However, the increase in current liabilities from £3,871 (2023) to £8,475 (2024) — primarily taxation and social security — suggests the company should monitor its short-term obligations carefully to avoid potential "symptoms" of cash flow strain.

The absence of employees signals a lean operational model, possibly relying on directors or subcontractors. While this reduces fixed costs, it may also mean the company is vulnerable to capacity constraints if demand rises.

Overall, the financial "vital signs" suggest a stable and well-managed company with no immediate distress signals.

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4. Recommendations:

• Maintain Healthy Cash Flow: Continue to monitor cash closely. The strong cash reserve is a key strength; avoid tying up excessive funds in non-liquid assets or receivables.

• Manage Liabilities Proactively: The rise in current liabilities, especially tax-related, should be reviewed to ensure timely payments and avoid penalties or liquidity crunches.

• Explore Growth Carefully: With a solid financial base, consider modest investments in business development or technology to support future scaling without compromising liquidity.

• Document Financial Planning: Implement regular financial forecasts to anticipate periods of higher tax or other liabilities, ensuring the company remains financially fit.

• Evaluate Talent Needs: Consider the potential need for employees or contractors to support growth, balancing cost with capacity to prevent operational bottlenecks.

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