ANDREW SMITH TECHNOLOGY SOLUTIONS LIMITED

Executive Summary

ANDREW SMITH TECHNOLOGY SOLUTIONS LIMITED is in a financially sound position with positive net current assets and no signs of distress in its first year. The company demonstrates healthy liquidity and equity for a micro-entity, with a strong foundation for future growth. Continued focus on cash flow management and profitability tracking will be key to maintaining financial wellness as the business scales.

ANDREW SMITH TECHNOLOGY SOLUTIONS LIMITED - Analysis Report

Company Number: 15018397

Analysis Date: 2025-07-29 18:46 UTC

Financial Health Assessment of ANDREW SMITH TECHNOLOGY SOLUTIONS LIMITED

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1. Financial Health Score: B

Explanation:
This company exhibits a solid financial footing for a newly incorporated micro-entity, demonstrating positive net current assets and shareholders' funds. The balance sheet indicates good liquidity and no immediate signs of distress. However, as this is the first full year of operation, the lack of historical profit and loss data and limited scale moderate the rating.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	26,722	Adequate cash and short-term assets to cover immediate obligations.
Current Liabilities	7,753	Low level of short-term debts, manageable given current assets.
Net Current Assets	18,969	Positive working capital, a vital sign of liquidity health and operational flexibility.
Total Net Assets	18,069	Reflects the company’s equity base; no significant long-term liabilities detected.
Shareholders’ Funds	18,069	Owner’s equity matches net assets, indicating no hidden liabilities or external debt.
Employee Count	1	Small operational scale consistent with micro-entity status; low fixed overhead costs.

Vital Signs Interpretation:
This small business has a “healthy cash flow” equivalent in accounting terms—ample current assets relative to liabilities, ensuring it can meet its short-term debts without strain. The positive net current assets suggest no symptoms of financial distress such as cash crunch or over-leverage.

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3. Diagnosis: Financial Condition Overview

The company is in a stable and healthy financial condition at this early stage. Key indicators such as positive net current assets and shareholders’ funds demonstrate a sound balance sheet with liquidity and solvency intact. The business has not shown any red flags like overdue filings, excessive liabilities, or negative equity.

Being in the micro-entity category, its reporting requirements are minimal, and it appears compliant and well-managed by the sole director/shareholder, Mr Andrew Neil Smith. The business is focused on IT consultancy, which often involves low capital expenditure and manageable working capital needs, consistent with the current financial profile.

The single-employee structure implies tight control over costs but also indicates growth potential constraints unless scaled up.

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4. Recommendations: Steps to Enhance Financial Wellness

• Maintain Strong Cash Reserves: Continue monitoring current assets to preserve liquidity, especially as the company grows.
• Implement Profit & Loss Tracking: Develop a detailed P&L statement to monitor profitability trends and operational efficiency beyond the balance sheet.
• Plan for Growth: Consider strategies to increase revenue streams and possibly hire additional staff to scale operations while managing costs prudently.
• Regular Financial Reviews: Conduct quarterly financial health checks to detect early symptoms of strain such as rising liabilities or declining net current assets.
• Compliance Vigilance: Keep up-to-date with filing deadlines and legal obligations to avoid penalties which could cause financial stress.
• Explore Funding Options: If expansion is planned, evaluate funding sources (e.g., loans, investor capital) to ensure sustained liquidity and growth without over-leverage.

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