A-PLOT LTD

Executive Summary

A-PLOT LTD exhibits persistent negative net assets and liquidity strains, indicating ongoing financial distress despite significant fixed asset holdings. The company currently relies on external support to maintain operations but faces solvency risks without capital restructuring and improved cash flow management. Immediate action to strengthen the balance sheet and optimize liquidity is critical to improve its financial health and future viability.

A-PLOT LTD - Analysis Report

Company Number: 12803875

Analysis Date: 2025-07-20 11:55 UTC

Financial Health Assessment for A-PLOT LTD

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1. Financial Health Score: D

Explanation:
A-PLOT LTD currently shows troubling “symptoms” of financial distress, notably persistent negative net assets (shareholders' deficit) for several years, indicating the company’s liabilities exceed its assets. This undermines the company’s balance sheet "vital signs" and puts it at risk of insolvency without external support. However, the company is still an active entity and not in liquidation, suggesting some level of ongoing support or potential recovery. The score reflects significant risk and a need for corrective action.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Net Assets (Shareholders' Funds)	-5,164	Negative net assets indicate the company owes more than it owns—a clear symptom of financial strain.
Net Current Assets (Working Capital)	-4,180	Negative working capital signals liquidity concerns; current liabilities exceed current assets, risking short-term cash flow problems.
Cash on Hand	1,672	Extremely low cash reserves, insufficient to cover immediate liabilities (£131,224 current liabilities).
Fixed Assets (Tangible)	130,240	The company holds significant fixed assets (real estate), which may not be liquid but provide some collateral value.
Current Liabilities	131,224	High current liabilities versus minimal liquid assets heighten risk of default on obligations.
Share Capital	1.00	Minimal equity investment, limiting financial buffer.
Employee Count	0	No employees indicating very lean operations or possibly dormant trading activities.

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3. Diagnosis: Underlying Business Health

• Balance Sheet Weakness: The company has been carrying a shareholders’ deficit since inception, worsening from -£600 in 2020 to -£5,164 in 2024. This chronic negative equity is a classic “symptom of distress,” suggesting the business has been funding operations or asset acquisitions through debt rather than profitable reinvestment or equity.

• Liquidity Concerns: Persistent negative working capital and very low cash indicate a strained liquidity position. The company’s ability to meet short-term obligations is severely compromised, raising the risk of insolvency if external support is withdrawn.

• Asset Structure: The majority of the company’s value is tied up in fixed assets (likely real estate given SIC code 68100). While these assets provide value, they are not readily convertible to cash and may require significant time or discounting to liquidate.

• Going Concern: The director's report notes the company is considered a going concern due to support from the director and associated entities via loans. This external lifeline currently masks the financial weaknesses but is not a sustainable standalone strategy.

• Operational Activity: No employees and minimal cash turnover might imply limited trading activity or a holding company model focused on property assets rather than active business operations.

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4. Recommendations: Improving Financial Wellness

1. Capital Injection: Seek additional equity investment or shareholder loans to restore positive net assets, improving solvency and providing working capital buffer.

2. Debt Restructuring: Negotiate with creditors to extend payment terms or reduce liabilities, alleviating immediate liquidity pressures.

3. Asset Review & Monetization: Evaluate fixed asset portfolio for potential sales or refinancing options to raise cash without disrupting core operations.

4. Cash Flow Management: Implement strict cash controls and budgeting to optimize available resources and prioritize critical payments.

5. Business Model Review: Assess whether the current operational structure (no employees, minimal cash) aligns with strategic goals, and consider restructuring or diversification to enhance revenue streams.

6. Regular Financial Monitoring: Establish monthly financial health checks focusing on liquidity ratios and working capital to detect early signs of worsening distress.

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Medical Analogy Summary

A-PLOT LTD’s financial statements show "vital signs" that resemble a patient with chronic illness: persistent negative net worth (akin to organ dysfunction), low liquidity (poor blood flow), and dependence on external support (medication/therapy). Without intervention—such as capital infusion and debt management—the prognosis worsens, risking insolvency. However, the existing "treatment plan" involving director and associated company support has so far kept the company "stable." Focused financial rehabilitation is essential for recovery.

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