Company Number: 13214870

Analysis Date: 2025-07-20 12:14 UTC

Financial Health Assessment of APGLAN CYF

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1. Financial Health Score: B

Explanation:
APGLAN CYF demonstrates a solid financial foundation with positive net current assets and shareholders’ funds. The company shows healthy working capital management and no overdue filings, which are positive signs. However, there is a notable reduction in assets and net current assets compared to the prior year, indicating some contraction or cash outflow which requires monitoring. Overall, the company is financially stable but with early signs warranting cautious attention.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Fixed Assets	7,167	Small asset base typical for a micro entity; no heavy investment in long-term assets.
Current Assets	38,079	Adequate short-term assets, mainly cash/debtors/stock, supporting day-to-day operations.
Current Liabilities	10,658	Manageable short-term debts; company can cover these comfortably with current assets.
Net Current Assets (Working Capital)	27,421	Healthy buffer indicating good liquidity ("healthy cash flow").
Total Assets less Current Liabilities	34,588	Positive net assets, reflecting sound capital structure.
Shareholders’ Funds	34,588	Equity exceeds liabilities, indicating solvency and retained earnings or capital injections.
Change in Net Current Assets	-15,072	Decrease from previous year’s 42,493 to 27,421 suggests cash outflow or increased payables.
Average Number of Employees	2	Small workforce consistent with micro entity status, indicating low operating overhead.
Filing Status	Up to date	No overdue accounts or confirmation statement, good compliance practice.

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3. Diagnosis

APGLAN CYF is a micro-sized private limited company operating in the "Artistic creation" sector, with a very lean structure (2 employees) and modest asset base. The company maintains a healthy liquidity position shown by positive net current assets, implying it can meet short-term obligations comfortably — a key "vital sign" of financial wellness.

However, the reduction in net current assets and total assets less current liabilities from £51,868 (2023) to £34,588 (2024) is a symptom to watch. This could reflect either increased expenses, lower revenues, or capital withdrawals. While the company is not in distress, these symptoms hint at some financial tightening or strategic investment phase that could affect short-term cash flow.

The absence of audit requirements and the use of micro-entity provisions is common for companies of this size but means less detailed external scrutiny. Directors appear to be fulfilling statutory responsibilities, and no negative compliance signals are detected.

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4. Recommendations

• Cash Flow Monitoring: Actively track cash inflows and outflows monthly to identify any emerging liquidity pressures early. Consider preparing cash flow forecasts for the next 6-12 months to anticipate funding needs.
• Cost Control: Review operating expenses to ensure they align with revenue trends, especially given the decline in net current assets.
• Revenue Growth: Explore new opportunities to increase turnover or diversify income streams in the artistic creation sector to restore asset base growth.
• Working Capital Management: Negotiate better payment terms with creditors and accelerate collection from debtors to improve net current assets.
• Financial Reporting: Though exempt from audit, consider voluntary periodic internal reviews or external advisory to strengthen financial governance.
• Strategic Planning: Directors should assess if the current financial contraction is part of a planned investment or restructuring, and communicate plans clearly to stakeholders.

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Medical Analogy Summary:
APGLAN CYF exhibits a “healthy pulse” with positive working capital and solvency, indicating it is financially "stable." However, the recent "symptoms" of asset shrinkage suggest some underlying "stress" that needs careful monitoring and management to maintain financial vitality.

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