ARBUCKLE BRIDGNORTH BUTCHER LTD

Executive Summary

ARBUCKLE BRIDGNORTH BUTCHER LTD demonstrates a solid financial foundation with improving liquidity and equity growth, indicating operational stability and healthy cash flow management. While the company is financially sound, attention to controlling rising current liabilities and continuing to build cash reserves will support sustainable growth and resilience. Maintaining good financial practices will ensure long-term wellness in this specialized retail sector.

ARBUCKLE BRIDGNORTH BUTCHER LTD - Analysis Report

Company Number: 13024850

Analysis Date: 2025-07-29 20:59 UTC

Financial Health Assessment for ARBUCKLE BRIDGNORTH BUTCHER LTD

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1. Financial Health Score: B

Explanation:
The company shows solid growth in net current assets and shareholder funds over the last three years, suggesting improving financial strength and operational stability. The balance sheet reflects good liquidity and a positive equity position, which are key indicators of financial health. However, as a micro-entity with relatively modest asset size and share capital, there is room to further strengthen cash flow management and reduce liabilities to achieve an "A" grade.

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2. Key Vital Signs

Metric	Value (FY 2025)	Interpretation
Fixed Assets	£54,562	Stable long-term assets, indicating investment in business infrastructure.
Current Assets	£317,307	Healthy short-term resources, likely including cash and receivables, supporting liquidity.
Current Liabilities	£140,334	Manageable short-term obligations, though higher than previous years—needs monitoring.
Net Current Assets	£176,973	Strong working capital, indicating the company can comfortably pay short-term debts.
Shareholders Funds (Equity)	£231,535	Robust equity base increased substantially from prior years, reflecting retained earnings.
Average Number of Employees	7	Small workforce consistent with micro business scale, manageable payroll expenses.

Vital Signs Interpretation:

• Liquidity ("Healthy cash flow"): The company’s net current assets more than doubled from £75,829 (2024) to £176,973 (2025), showing a significant improvement in liquidity—a key symptom of financial vitality.
• Leverage: The current liabilities increased but remain well covered by current assets, indicating no immediate distress signals.
• Capital Structure: Shareholders' funds have grown from £21,764 (2021) to £231,535 (2025), a strong sign of retained profits and/or capital infusion, which strengthens the company’s buffer against financial shocks.

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3. Diagnosis

Overall Financial Condition:
ARBUCKLE BRIDGNORTH BUTCHER LTD presents as a financially healthy small business with improving liquidity and equity. The sharp rise in current assets and shareholder funds indicates an expanding asset base and profitability. The fixed assets remain stable, suggesting consistent investment in operational capacity without over-leveraging. The company’s working capital position is strong, which means it has the necessary short-term resources to meet obligations without strain—a critical aspect to avoid liquidity crises.

Symptoms of Potential Concern:

• Increase in current liabilities from £90,269 (2024) to £140,334 (2025) warrants monitoring to ensure these do not escalate disproportionately relative to cash inflows.
• Micro-entity status limits detailed financial disclosures, so profitability and cash flow details are less transparent. However, the rising equity suggests profits are being retained.

The company is not in liquidation or under any distress process, and all statutory filings are up to date, further confirming operational soundness.

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4. Recommendations

• Maintain Strong Cash Flow Monitoring: Regularly track receivables and payables to ensure net current assets remain positive and growing. Consider negotiating better payment terms to reduce current liabilities if possible.
• Build Cash Reserves: With increased liquidity, build a cash buffer to safeguard against seasonal fluctuations in sales or unexpected expenses common in retail meat trade.
• Invest in Operational Efficiency: Review fixed asset utilization to optimize returns on investments, possibly upgrading equipment to improve margins.
• Plan for Growth: Use healthy equity as leverage to explore modest expansion or marketing initiatives, mindful of maintaining the strong financial base.
• Enhanced Financial Reporting: Even as a micro-entity, consider internal management accounts to gain better insight into profitability and cash flow trends for informed decision-making.
• Risk Management: Implement basic risk controls around inventory (perishable nature of meat products) and debtor management to avoid financial strain.

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