Company Number: 14935234

Analysis Date: 2025-07-29 19:21 UTC

Financial Health Assessment for A.O.R BUILDING SERVICES LTD

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1. Financial Health Score: C

Explanation:
A.O.R BUILDING SERVICES LTD is a very young micro-entity, just over one year old, with modest financial data typical of a startup phase. The company shows positive net current assets and net assets, but the overall equity base is very small (£155), indicating limited financial cushion. The business is operational and compliant with filings, which is a good sign, but the thin capital base and presence of deferred income suggest initial working capital constraints and reliance on future revenues.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	3,852	Small but positive; reflects cash, receivables, stock
Current Liabilities	2,497	Short-term obligations that must be settled soon
Net Current Assets	1,355	Positive working capital—healthy short-term liquidity
Accruals & Deferred Income	1,200	Income received but not yet earned—potential future obligations
Net Assets (Equity)	155	Very low shareholder funds; minimal buffer for losses
Average Employees	1	Micro-business scale with minimal staffing

• Current Ratio (Current Assets / Current Liabilities): ≈ 1.54
  Healthy ratio above 1 indicates ability to cover short-term debts.

• Equity to Assets Ratio: Very low
  Equity is only £155 against total net assets of £1,355, highlighting a thin capital base.

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3. Diagnosis

A.O.R BUILDING SERVICES LTD presents as a nascent, micro-sized building development business with foundational financial health but limited capital resources. The company’s positive net current assets indicate a "healthy cash flow pulse," suggesting the ability to meet immediate liabilities without distress. However, the very low net asset value and presence of accruals/deferred income reflect typical "symptoms of early-stage business"—limited retained earnings, potential future service obligations, and reliance on founder financing or incoming revenues.

The director, Mrs. Alice O'Reilly, holds full control and is actively managing the company, which is a positive governance sign. The business is compliant with statutory filing deadlines, reducing regulatory risk.

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4. Recommendations

To strengthen financial wellness and avoid symptoms of distress such as cash flow shortages or capital inadequacy, the following actions are advised:

• Build Capital Reserves: Consider injecting additional equity or retained profits to enhance net assets and provide a buffer against unexpected expenses.

• Monitor Cash Flow Closely: Maintain vigilance on working capital management, ensuring timely collection of receivables and control of payables.

• Manage Deferred Income Obligations: Plan for the fulfillment of services linked to deferred income to avoid future cash outflows without revenue.

• Gradually Scale Operations: As business activity grows, carefully expand staffing and fixed assets without overextending financial commitments.

• Seek Financial Advice: Engage with a financial adviser or accountant periodically to assess financial strategies, tax planning, and growth funding options.

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