AP 95 LIMITED

Executive Summary

AP 95 LIMITED is a financially stable micro dental practice with strong liquidity and positive equity, indicating good financial health. The company should monitor its slight recent decline in net assets and manage cash flow carefully to sustain its stability. With prudent cost control and modest growth planning, its financial outlook remains positive.

AP 95 LIMITED - Analysis Report

Company Number: 12853967

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

Financial Health Assessment for AP 95 LIMITED

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1. Financial Health Score: B

Explanation:
AP 95 LIMITED demonstrates a solid financial foundation with strong liquidity and positive net assets, typical for a micro-entity dental practice. The company has maintained healthy working capital and equity over the years. There is a slight downward trend in net current assets and shareholders’ funds in the latest year, which suggests some mild caution but no critical distress. The absence of debt beyond current liabilities and a clean filing record further support a positive but watchful grade.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Fixed Assets	899	Minimal investment in long-term assets, typical for service sector.
Current Assets	229,018	Healthy cash and receivables to cover short-term needs.
Current Liabilities	51,245	Manageable short-term obligations.
Net Current Assets	177,773	Strong working capital, indicating good liquidity.
Total Assets Less Current Liabilities	178,672	Positive net assets, showing company value exceeds liabilities.
Shareholders’ Funds (Equity)	178,672	Solid equity base owned by the single shareholder/director.
Employee Count	1	Very small operation, reflecting a micro-business scale.

Interpretation:

• Liquidity ("Healthy cash flow"): Net current assets remain comfortably positive, indicating the company can meet its short-term obligations without strain.
• Solvency ("Stable backbone"): Shareholders’ funds well exceed liabilities, confirming the company is solvent with no signs of financial distress.
• Asset Base ("Lean operational model"): Very low fixed assets suggest a business model focused on services rather than capital-intensive activities.
• Trend ("Mild symptom of contraction"): A slight decline in net current assets and equity signals the need to monitor expenses or revenue sources to prevent erosion of capital.

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3. Diagnosis

AP 95 LIMITED is financially stable and solvent, operating as a micro-entity dental practice with strong liquidity and equity. The company exhibits no signs of acute financial distress or over-leverage. The consistent net current assets and equity growth from 2020 to 2023, followed by a modest decline in 2024, could be a symptom of increased current liabilities or reduced cash inflows that warrants attention.

The single director and 100% shareholder structure provides clear control and responsibility, reducing governance risks. The absence of audit requirements and the micro-entity filing status suggest a simple financial structure, common for small professional practices.

Overall, the company is in a good financial condition but should watch for early warning signs, such as rising liabilities or falling assets, to maintain health.

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4. Recommendations

• Monitor Cash Flow: Maintain strong oversight on receivables and payables to avoid cash flow tightness. Timely invoicing and collection are critical.
• Control Costs: Review operational expenses carefully to prevent further erosion of net current assets. Even small increases in liabilities can impact this micro-business.
• Build Fixed Asset Base Prudently: Consider modest investments in equipment if needed to enhance service capacity, but avoid overcapitalization.
• Plan for Growth: Explore opportunities to increase patient base or services offered to reverse the slight decline in net assets and equity.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Risk Management: Keep an emergency cash reserve to buffer unexpected expenses given the small size and single-person operation.

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