APEX HQ LIMITED

Executive Summary

APEX HQ LIMITED shows solid financial health with improving liquidity and net assets, indicating a stable and well-managed micro business. The company’s positive working capital and steady equity growth suggest resilience, though its small scale calls for careful cash flow management and strategic growth to ensure long-term financial wellness.

APEX HQ LIMITED - Analysis Report

Company Number: 13273449

Analysis Date: 2025-07-20 17:48 UTC

Financial Health Assessment Report for APEX HQ LIMITED

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1. Financial Health Score: B

Explanation:
APEX HQ LIMITED demonstrates solid financial stability with improving liquidity and net asset positions in the latest financial year. The company has a positive working capital and net assets, indicating a generally healthy financial condition for a micro-entity. However, the relatively small scale of operations, modest fixed assets, and modest net assets suggest some vulnerability to external shocks or unexpected expenses. The score "B" reflects a business with sound financial health but room for strengthening resilience and growth capacity.

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2. Key Vital Signs

Metric	2024 (Latest)	Interpretation
Fixed Assets	£5,479	Modest investment in long-term assets, appropriate for micro size; implies conservative capital expenditure.
Current Assets	£12,471	Healthy level of liquid and short-term assets, increased substantially from prior year, indicating improved cash or receivables.
Current Liabilities	£11,351	Current obligations have increased but remain covered by current assets.
Net Current Assets (Working Capital)	£2,141	Positive working capital, a key "healthy cash flow" indicator, showing the company can meet short-term liabilities comfortably.
Total Assets Less Current Liabilities	£7,620	Positive buffer beyond immediate liabilities, showing operational solidity.
Net Assets (Equity)	£3,960	Positive and increasing net worth, reflecting retained earnings and shareholder funds growth.
Share Capital	£2	Minimal share capital, typical for small private companies.
Average Employees	2	Small workforce consistent with micro company status.

Interpretation:
The improvement in net current assets from a negative £700 to a positive £2,141 is a strong sign the company has addressed previous liquidity stress. Increasing current assets, especially cash or receivables, are "healthy pulse signs" indicating better short-term financial management or business growth.

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3. Diagnosis

APEX HQ LIMITED shows encouraging signs of financial health for a micro-entity operating in “Other sports activities.” The company has transitioned from a working capital deficit in previous years to a positive position, which implies better cash management and operational efficiency.

The net assets have steadily increased from £3,039 in 2023 to £3,960 in 2024, indicating retained profits or capital injections that strengthen financial resilience. The fixed asset base is stable but small, which is typical for a service or sports activity company that may not require significant capital expenditure.

No overdue filings or compliance issues are noted, and directors appear stable with clear shareholder control evenly split between two individuals. The company’s operating scale is small with only 2 employees, reinforcing the micro entity classification.

Symptoms of distress such as negative working capital or net liabilities are absent, which is a positive sign. However, the small scale and modest equity base mean the company must remain vigilant to avoid liquidity strain or shocks that could arise from unexpected expenses or revenue interruptions.

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4. Recommendations

• Maintain Positive Cash Flow: Continue monitoring working capital closely to avoid slipping back into deficit. Consider strengthening cash reserves to buffer against seasonal fluctuations or delayed payments.

• Increase Revenue Streams: Explore opportunities to grow sales or diversify services within the sports activities sector to build scale and increase profitability.

• Review Cost Structure: Evaluate fixed and variable costs periodically to ensure operational efficiency, especially with a small team.

• Capital Planning: While fixed assets are appropriate for current operations, consider strategic investment in equipment or technology that could enhance productivity or service offerings.

• Compliance Vigilance: Maintain timely filing of accounts and confirmation statements to avoid penalties or regulatory scrutiny.

• Risk Management: Consider basic insurance and contingency planning to safeguard against business interruptions or liabilities.

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Medical Analogy Summary:
APEX HQ LIMITED’s financial “vital signs” indicate a company with a healthy pulse and improving circulation (working capital). The "organs" (net assets and equity) are stable and growing, suggesting overall good health, though the small size means the company remains somewhat vulnerable to economic stress. Maintaining robust cash flow and proactive financial management will keep the business in good shape and ready to grow.

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