ANOTHER LEVEL PROJECTS LIMITED

Executive Summary

ANOTHER LEVEL PROJECTS LIMITED exhibits solid financial health with positive working capital, growing equity, and evidence of business expansion. Attention is needed to optimize debtor collections and manage cash reserves to sustain liquidity. If these symptoms are addressed, the company is well-positioned for continued growth and financial stability.

ANOTHER LEVEL PROJECTS LIMITED - Analysis Report

Company Number: 13644631

Analysis Date: 2025-07-29 13:04 UTC

Financial Health Assessment for ANOTHER LEVEL PROJECTS LIMITED
Assessment Date: Financial year ended 30 September 2024

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1. Financial Health Score: B

Explanation:
ANOTHER LEVEL PROJECTS LIMITED demonstrates a generally healthy financial status with strong working capital, growing net assets, and adequate liquidity. The company shows sound equity funding and manageable liabilities. However, the slight decrease in cash reserves and rising long-term creditors suggest areas for vigilance and improvement to maintain and enhance financial wellness.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	414,294	Healthy short-term asset base, including cash and receivables, supporting operational needs.
Cash	156,003	Sufficient but reduced cash reserves compared to previous year; requires monitoring liquidity.
Debtors (Trade Receivables)	233,548	Substantial increase, indicating more sales on credit; potential risk if collection slows.
Current Liabilities	188,227	Increased from prior year but still comfortably covered by current assets.
Net Current Assets	226,067	Positive working capital; company can meet short-term obligations without stress.
Fixed Assets (Tangible)	142,904	Investment in plant, equipment, and vehicles is growing, supporting business capacity.
Long-Term Liabilities	112,888	Increased long-term creditors and provisions; manageable but warrants prudent cash flow planning.
Net Assets (Equity)	256,083	Growing shareholder equity signals retained earnings and financial stability.
Employees	6 (average)	Moderate workforce size consistent with company growth stage.
Profit and Loss Reserves	256,080	Retained earnings indicate cumulative profitability.

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3. Diagnosis: Financial Vitality and Symptoms Analysis

• Healthy Cash Flow and Liquidity:
  The company holds a strong net current asset position (£226k), a key indicator of liquidity health — akin to a patient with a steady heartbeat and strong pulse. Despite a reduction in cash balance (£156k from £236k), the firm maintains sufficient liquid resources to cover immediate expenses, showing healthy cash flow management.

• Working Capital Management:
  The rise in debtors (trade receivables) from £87.9k to £233.5k is a symptom that requires attention. While it reflects increased sales activity, it may indicate slower collections or extended credit terms, which if unmanaged, could impair liquidity and cash flow—similar to a clogged artery restricting blood flow.

• Asset Growth and Investment:
  The increase in tangible fixed assets (£142.9k from £74.1k) suggests reinvestment in operational capacity, a positive sign of business expansion and preparation for future growth.

• Liabilities: Current and Long Term:
  Both current liabilities and long-term creditors have increased, but levels remain manageable relative to assets and equity. The presence of provisions (£35.7k) signals prudent recognition of future obligations or risks.

• Equity and Retained Earnings:
  Net assets and shareholders funds have increased steadily, indicating profitable operations and retained earnings accumulation, a strong indicator of overall financial health—akin to robust muscle mass supporting the organism.

• Company Age and Growth Stage:
  Incorporated in 2021, the company is still relatively young but showing promising growth trends in assets, equity, and workforce size, which bodes well for long-term viability.

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4. Recommendations: Prescriptions for Financial Wellness

1. Improve Debtor Collection Practices:
   Implement stricter credit control and collection policies to reduce debtor days and convert receivables into cash faster. This will alleviate liquidity pressure and improve cash flow robustness.

2. Monitor Cash Reserves Closely:
   Although current cash levels are adequate, the decline from the previous year calls for careful cash flow forecasting and management to avoid potential liquidity crunches, especially if debtor collections slow.

3. Manage Long-Term Liabilities Prudently:
   Regularly review and plan for repayment of long-term creditors and provisions to ensure they do not become a burden on future cash flows, maintaining a balanced financial "immune system."

4. Maintain Asset Utilization Efficiency:
   Ensure investments in tangible fixed assets translate into increased operational efficiency and revenue growth to justify capital expenditures.

5. Regular Financial Health Check-Ups:
   Continue monitoring key financial ratios such as current ratio, quick ratio, and gearing to detect early symptoms of distress and take corrective action promptly.

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