APOLO CONSTRUCTIONS LIMITED

Executive Summary

APOLO CONSTRUCTIONS LIMITED is a micro-sized construction business exhibiting stable but minimal financial activity with break-even earnings and limited assets. The company's current financial health is fragile, lacking profitability and reserves to absorb shocks. Targeted actions to improve profitability, build reserves, and carefully invest in growth are recommended to enhance financial resilience and support future expansion.

APOLO CONSTRUCTIONS LIMITED - Analysis Report

Company Number: 12827459

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

Financial Health Assessment of APOLO CONSTRUCTIONS LIMITED

---

1. Financial Health Score: C

Explanation:
APOLO CONSTRUCTIONS LIMITED shows stable but minimal financial activity typical of a micro-entity startup in the construction sector. The company operates with a very small asset base and modest turnover, breaking even but not generating profits. While there are no alarming signs of distress, the limited scale and lack of profitability growth suggest caution. The company currently maintains financial "vital signs" within acceptable limits for its size, but it has limited financial resilience or growth momentum.

---

2. Key Vital Signs

Metric	2024 Figure	Interpretation
Turnover	£75,000	Small but shows slight growth from £69,000 in 2023, indicating stable revenue flow.
Cost of Materials	£49,000	Represents about 65% of turnover, typical for construction but tight margin.
Staff Costs	£26,000	Staff costs equal to 35% of turnover; indicates lean workforce but no growth yet.
Profit/Loss	£0	Break-even position, no retained earnings or losses; no cushion for downturns.
Fixed Assets	£1,000	Very low, minimal investment in equipment or property.
Net Assets / Shareholders’ Funds	£1,000	Minimal equity base, indicating low capitalization and limited buffer against losses.
Current Assets & Net Current Assets	£1,000	Very limited working capital; potential liquidity constraints.
Number of Employees	1	Single employee operation (likely the director), signaling limited operational scale.

Interpretation: The company’s financial profile resembles a patient with stable but fragile vital signs. Revenues are modestly growing, but the absence of profit and minimal assets indicate vulnerability to shocks. The cash flow is presumably tight given the slim net assets and working capital.

---

3. Diagnosis

APOLO CONSTRUCTIONS LIMITED is in a stable yet nascent financial state typical of a microenterprise in early development stages. The "symptoms" observed include:

• Break-even earnings: No profit margin means the company is not yet generating surplus funds to reinvest or build reserves. This is a symptom of a fragile financial condition.
• Minimal asset base: With only £1,000 in fixed assets and a similarly low net asset value, the company has very limited capital to leverage for growth or absorb losses.
• Modest turnover growth: The slight increase in turnover over two years is positive but insufficient to signal robust expansion or increased market share.
• Limited workforce: Operating with one employee (the director) restricts capacity for larger projects or diversification.
• No retained earnings: The absence of accumulated profits means the company is still building its financial foundation.

Overall, the diagnosis is that APOLO CONSTRUCTIONS LIMITED is a financially "stable but fragile" micro-business. It functions adequately but lacks the financial robustness and profitability needed for healthy growth or to withstand adverse market conditions.

---

4. Recommendations

To improve financial wellness and build resilience, the company should consider the following actions:

• Enhance Profitability:
  Review and optimize cost structures, especially material costs and staff expenses. Explore pricing strategies or service differentiation to improve margins.

• Build Financial Reserves:
  Aim to generate positive retained earnings to create a buffer against future downturns or unexpected expenses.

• Invest in Growth:
  Consider strategic investment in additional fixed assets or tools that enhance productivity and capacity to take on larger or more profitable contracts.

• Expand Workforce Carefully:
  Hiring skilled personnel or subcontractors could increase operational capacity, but must be balanced against cost control.

• Improve Cash Flow Management:
  Monitor working capital closely to avoid liquidity issues. Negotiate payment terms with suppliers and clients to optimize cash inflows and outflows.

• Develop Business Plan:
  Formalize growth targets, financial projections, and risk management strategies to guide decision-making and attract potential investors or lenders.

• Explore Funding Options:
  Investigate grants, loans, or equity finance suitable for micro construction firms to support capital expenditure or working capital needs.

---