ANTLER CONSTRUCTION LTD

Executive Summary

Antler Construction Ltd shows signs of financial strain, with declining liquidity and halved net assets over the last year, indicating emerging cash flow challenges and reduced financial resilience. While not currently insolvent, the company needs to act decisively on cost control, cash flow management, and potentially seek additional financing to restore financial health and secure future stability.

ANTLER CONSTRUCTION LTD - Analysis Report

Company Number: 12899970

Analysis Date: 2025-07-29 20:43 UTC

Financial Health Assessment for Antler Construction Ltd
As of the financial year ended 30 September 2024

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1. Financial Health Score: C

Explanation:
Antler Construction Ltd demonstrates basic financial viability but shows signs of weakening liquidity and shrinking net equity compared to prior years. The modest level of net current assets and declining net assets suggest emerging financial stress, warranting careful monitoring and remedial action.

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2. Key Vital Signs

Metric	2024 Value (£)	Trend vs. 2023	Interpretation
Fixed Assets	5,565	↓ (from 6,956)	Slight reduction in long-term asset investment; possible asset disposals or depreciation.
Current Assets	23,385	↓ (from 33,356)	Significant drop in short-term resources, impacting liquidity.
Current Liabilities	20,215	↑ (from 19,332)	Increase in short-term obligations, raising immediate cash demands.
Net Current Assets (Working Capital)	3,170	↓ (from 14,024)	Sharp decline indicates tighter liquidity, potential cash flow stress.
Net Assets / Shareholders’ Funds	8,735	↓ (from 20,980)	Substantial erosion of equity base, reducing financial buffer.
Staff Numbers	1	↓ (from 2)	Reduction in workforce may reflect cost-cutting or reduced operations.

Interpretation:

• Liquidity (Net Current Assets): The sharp decline from £14k to £3.2k signals "symptoms of distress" in short-term financial health, meaning less cash or quickly realizable assets are available to meet immediate liabilities.
• Solvency (Net Assets): The net asset base has more than halved, indicating a weakening cushion against financial shocks. This could reflect accumulated losses or asset devaluations.
• Asset Management: Marginal decline in fixed assets suggests limited investment in long-term capabilities or asset sales.
• Operational Scale: Workforce halved, which may reduce overhead but also capacity.

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3. Diagnosis

Antler Construction Ltd currently exhibits a fragile financial condition characterized by deteriorating liquidity and shrinking equity. The company still maintains positive working capital and net assets, but the rapid declines from the previous year are worrying "symptoms" indicating potential cash flow problems and eroding financial resilience. The small scale (micro-entity) and single-director structure may limit financial flexibility.

The "healthy cash flow" that would support growth or absorb shocks appears compromised. The company is not in immediate danger of insolvency but needs to address the underlying causes of declining asset values and increasing liabilities to avoid progressing toward financial distress or illiquidity.

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4. Recommendations

To improve financial wellness, Antler Construction Ltd should consider the following actions:

• Cash Flow Management:
  Tighten control over receivables and payables. Accelerate collections and negotiate extended payment terms with suppliers to improve net current assets.
• Cost Control:
  Review overhead and operating expenses thoroughly. The reduction in staff from two to one may be a start, but further efficiencies should be sought without compromising project delivery.
• Asset Utilization:
  Evaluate fixed assets usage and consider whether disposals or reinvestments could optimize returns. Avoid unnecessary asset sales that weaken the capital base.
• Equity Injection or Financing:
  Explore options for fresh equity investment or short-term financing to bolster net assets and provide a buffer for growth or downturns.
• Strategic Planning:
  Conduct a business review to identify profitable projects and markets. Focus on core competencies in domestic building construction to stabilize revenues.
• Regular Financial Monitoring:
  Implement monthly financial reviews to detect early signs of distress and respond promptly. Consider engaging an accountant for detailed cash flow forecasting.

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