APOLLO RECOVERY & PERFORMANCE LIMITED

Executive Summary

Apollo Recovery & Performance Limited operates on a micro scale within the health activities sector but shows persistent liquidity challenges with current liabilities significantly exceeding current assets. While net assets have improved slightly, the negative working capital and increasing creditor balances present a risk to short-term solvency. Credit facilities may be cautiously approved with tight conditions and active monitoring of liquidity and operational cash flows.

APOLLO RECOVERY & PERFORMANCE LIMITED - Analysis Report

Company Number: 12824461

Analysis Date: 2025-07-20 15:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

Apollo Recovery & Performance Limited shows a micro-entity scale operation with a very modest capital base and limited fixed assets. The company has been operational since 2020 and currently employs one person. However, the company’s financial position reveals persistent working capital deficits and growing current liabilities, which exceed current assets by a significant margin (£21,381 negative net current assets in 2024). This indicates liquidity stress and potential difficulty in meeting short-term obligations. The increase in creditors falling due after more than one year (£9,481 in 2024) further strains the balance sheet. Nonetheless, the net assets and shareholder funds have improved slightly from £2,082 in 2023 to £3,100 in 2024, showing some retained earnings or capital injection. The director is the sole current appointee and principal controller, which simplifies governance but also concentrates control risk. Given the limited scale, weak liquidity, and reliance on a single director, credit exposure should be limited and closely monitored. Approval for credit facilities could be considered with conditions such as limits on borrowing amounts, frequent financial updates, and possibly personal guarantees.

2. Financial Strength:

The balance sheet shows fixed assets stable at £15,000 but current assets only £11,229 against current liabilities of £32,610, resulting in a net current liability position of -£21,381. This indicates an over-reliance on short-term creditor funding and insufficient liquid assets to cover current debts. Total assets less current liabilities are negative at -£6,381, though long-term creditors of £9,481 partially offset this, resulting in a net asset position of £3,100. Shareholders’ funds are minimal but positive, indicating some retained equity. The company’s financial strength is weak due to liquidity constraints and mounting short-term obligations, raising concern about ongoing solvency without improved cash flows or capital injection.

3. Cash Flow Assessment:

The available data suggests the company operates with limited cash reserves and negative working capital. Current liabilities are rising faster than current assets, suggesting cash outflows exceed inflows on an ongoing basis. The absence of an audit and profit and loss statement limits full cash flow analysis, but the working capital deficit and creditor build-up imply cash flow pressure. The company’s ability to generate sufficient liquidity from operations to meet short-term liabilities appears constrained, heightening default risk without improved cash management or external funding support.

4. Monitoring Points:

• Track changes in current liabilities and current assets to watch working capital trends closely.
• Monitor creditor aging to assess whether payables are being settled timely or if defaults emerge.
• Review any new borrowing or credit facilities to ensure they do not exacerbate liquidity issues.
• Request periodic management accounts or cash flow forecasts to gauge operational cash generation.
• Watch director changes or any additional capital injections that could affect governance or financial stability.
• Be alert to any late filings or regulatory non-compliance that may indicate operational distress.