ANGLO ES BEAN LANE LTD

Executive Summary

Anglo ES Bean Lane Ltd has made a notable recovery from negative net assets and working capital in 2023 to a stable and positive financial position in 2024, reflecting improved liquidity and solvency. The company’s current financial health is good (graded B), but ongoing attention to cash flow, inventory management, and debtor collection is essential to sustain this improvement. With prudent financial management, the outlook remains positive.

ANGLO ES BEAN LANE LTD - Analysis Report

Company Number: 14458499

Analysis Date: 2025-07-29 12:49 UTC

Financial Health Assessment for Anglo ES Bean Lane Ltd as of 31 March 2024

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1. Financial Health Score: B

Explanation:
The company has shown a significant turnaround from a precarious position with negative net assets and working capital last year to a solid positive net asset and net current asset position this year. The balance sheet now reflects a healthy cushion of liquidity and equity, indicating recovery and stability. However, some aspects such as fluctuating cash balances and reliance on related party balances suggest room for improvement and monitoring.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	205,167	199,522	Slight increase in short-term resources available.
Cash at Bank and in Hand	70,394	112,011	Cash has decreased, indicating cash outflows or investment.
Debtors	22,229	9,020	Increase in receivables, might indicate more sales or delayed collections.
Current Liabilities	-	199,564	No current liabilities reported in 2024, a major positive.
Net Current Assets	205,167	-42	Turned from negative to strong positive working capital.
Net Assets	205,167	-42	Shifted from negative equity to positive net assets.
Shareholders’ Funds	205,167	-42	Indicates improved financial strength and capital base.
Share Capital	102	100	Minimal increase, typical for a small company.
Stock (Inventory)	112,544	78,491	Significant increase, suggests inventory build-up.

Interpretation of Vital Signs:

• The company’s cash flow shows signs of "recovery heartbeat" but reduced cash compared to prior year might indicate investments or payments made.
• The working capital moved from a symptom of distress (negative in 2023) to a healthy state (positive in 2024), indicating improved short-term liquidity.
• Net assets turning positive reflects an improved overall financial health and solvency.
• The increase in stock and debtors may indicate expanding operations but also potential risks if inventory or receivables are not managed properly.
• Absence of current liabilities on the 2024 balance sheet may reflect repayment of debts or reclassification but should be monitored for accuracy.

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3. Diagnosis

Anglo ES Bean Lane Ltd was in a fragile state as of March 2023, with negative net assets and negative working capital, indicating a financial condition akin to a patient with severe liquidity issues and insolvency risk. However, by March 2024, the company has shown a robust recovery with positive net assets and strong working capital, suggesting successful treatment of previous financial ailments.

The company's financial "vital signs" indicate improved solvency and liquidity, akin to a patient regaining strength after treatment. The presence of related party balances (notably the large creditor balance in 2023) and the controlling interest by related companies suggest a group support structure that may have contributed to this improvement.

However, the reduction in cash reserves and increase in stock levels could be symptoms that require monitoring to avoid future liquidity crunches. The company appears to be in a stable condition but with caution warranted around operational efficiency and cash flow management.

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4. Recommendations

• Maintain Healthy Cash Flow:
  Monitor and manage cash balances carefully to ensure sufficient liquidity for operational needs. Consider cash flow forecasting as a preventive measure against future shortages.

• Manage Inventory Levels:
  The significant increase in stock should be assessed for turnover rates to avoid tying up capital in slow-moving inventory, which can be a hidden “financial blockage.”

• Improve Debtor Collection:
  Increase efforts to collect outstanding receivables promptly to convert debts into cash, improving liquidity and reducing credit risk.

• Review Related Party Transactions:
  Since the company is controlled by related entities, ensure all intra-group transactions are transparent, at arm’s length, and properly documented to avoid financial or regulatory risks.

• Regular Financial Monitoring:
  Treat the financial health of the company like a regular health checkup — monthly or quarterly financial reviews to catch any early signs of distress.

• Consider Audit or External Review:
  Although exempt, an external audit or review could provide additional assurance on financial health and governance, especially as the company grows.

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