ARDENT CARE CONNECT SERVICES LIMITED

Executive Summary

Ardent Care Connect Services Limited has made a significant financial recovery in the latest year, moving from a position of negative net assets and working capital deficits to a healthier, positive financial footing. This turnaround reflects improved liquidity and solvency, signaling a stabilizing business. Continued prudent financial management and monitoring are essential to sustain and build on this progress.

ARDENT CARE CONNECT SERVICES LIMITED - Analysis Report

Company Number: 13587223

Analysis Date: 2025-07-29 13:23 UTC

Financial Health Assessment Report
Company: Ardent Care Connect Services Limited
Assessment Date: August 31, 2024

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1. Financial Health Score: C+

Explanation:
Ardent Care Connect Services Limited has shown a significant turnaround in its financial position in the latest financial year with positive net assets and net current assets after several years of negative figures. This improvement signals recovery and strengthening of financial health. However, the company’s overall scale is small (Micro category), and the margin of safety remains modest. The score C+ reflects a recovering but still cautious financial outlook.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	1,786	800	Slight increase; stable investment in long-term assets.
Current Assets	19,752	3,714	Significant growth, indicating improved liquidity and operational cash.
Current Liabilities	11,707	15,564	Decreased liabilities, reducing short-term debt pressure.
Net Current Assets (Working Capital)	8,045	-11,850	Healthy positive working capital now; a vital sign of operational health.
Total Assets Less Current Liabilities	9,831	-11,050	Shift from negative to positive net assets signals balance sheet recovery.
Net Assets/Shareholders’ Funds	9,131	-11,050	Positive equity indicates the company is no longer insolvent on paper.
Average Number of Employees	4	Nil	Business expansion with staff added, suggesting operational growth.

Interpretation:

• The healthy cash flow is indicated by the net current assets moving from a deficit of £11,850 to a positive £8,045 — a key symptom of improved liquidity and ability to meet short-term obligations.
• The turnaround from negative net assets (£-11,050) to positive £9,131 shows a major recovery in the company’s financial resilience.
• Reduced current liabilities alongside increased current assets point to better management of payables and receivables.
• The increase in staff numbers from zero to four employees suggests expansion and increased operational activity.

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3. Diagnosis

Ardent Care Connect Services Limited had previously exhibited symptoms of financial distress with several years of negative net assets and working capital deficits, indicating challenges in meeting short-term liabilities and potential solvency concerns. These symptoms are akin to a patient who was critically ill but now shows signs of convalescence.

The latest financial year reveals a marked improvement in liquidity and solvency metrics, with a positive net asset position and stronger working capital. This suggests effective management interventions or capital injections have helped stabilize the business. The presence of fixed assets, though modest, supports ongoing operations.

Despite this recovery, the company remains relatively small with limited financial buffers and a narrow margin of safety. The business must continue to monitor cash flow and cost control closely to avoid relapse into financial distress.

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4. Recommendations

To ensure continued improvement and long-term financial wellness, the following steps are advised:

1. Maintain Healthy Cash Flow:
   Regularly monitor cash inflows and outflows to sustain positive working capital. Consider cash flow forecasting to anticipate liquidity needs.

2. Strengthen Capital Reserves:
   Explore options for increasing retained earnings or equity through reinvestment of profits or external funding to build a stronger financial cushion.

3. Control Current Liabilities:
   Negotiate better payment terms with suppliers and manage creditor days to avoid liquidity crunches.

4. Operational Efficiency:
   Continue to scale operations carefully while managing costs. Employee growth should be aligned with revenue increases to maintain profitability.

5. Regular Financial Review:
   Implement monthly or quarterly financial check-ups, akin to routine health screenings, to detect early signs of financial stress and address them promptly.

6. Compliance and Reporting:
   Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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