Company Number: 13296134

Analysis Date: 2025-07-20 13:41 UTC

Financial Health Assessment Report for AROOS SUPERMARKET LTD

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1. Financial Health Score: B

Explanation:
AROOS SUPERMARKET LTD demonstrates a generally stable financial position with positive net assets and improving working capital. However, the company shows moderate levels of long-term liabilities relative to equity, which warrants cautious monitoring. The overall financial condition is sound for a micro-entity but with some signs that require attention to maintain and improve financial wellness.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	46,297	Stable investment in long-term assets, indicating some operational capacity and asset base.
Current Assets	116,329	Healthy cash, stock, and receivables, showing good liquidity to meet short-term obligations.
Current Liabilities	87,085	Obligations due within one year; manageable against current assets.
Net Current Assets (Working Capital)	29,244	Positive and increasing, signifying a "healthy cash flow" cushion and operational liquidity.
Total Assets less Current Liabilities	75,541	Represents asset base after settling short-term debts, growing year-on-year indicating asset growth.
Creditors Falling After One Year	58,452	Long-term liabilities are significant relative to equity, a "symptom" that should be monitored.
Net Assets (Equity)	17,089	Equity base growing steadily, showing retained profits/support from owners.
Share Capital	100	Minimal share capital, common for micro-entities; most funding from retained earnings or loans.
Average Number of Employees	6	Small workforce consistent with micro-entity status.

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3. Diagnosis

AROOS SUPERMARKET LTD is exhibiting "signs of financial health" through positive and increasing net assets and working capital, which indicate operational stability and good liquidity. The company has grown its asset base and improved its ability to cover short-term liabilities comfortably.

However, there are "symptoms of financial stress" related to the long-term creditors, which amount to approximately £58k, about 3.4 times the share capital and roughly 3.4 times the net assets. While the company is not in distress, this leverage level suggests dependency on external financing which could pose challenges if cash flow tightens.

The company's micro-entity status and exemption from audit imply limited disclosure, so while the balance sheet looks sound, deeper profitability or cash flow analysis is not available here. The increase in average employees from 5 to 6 aligns with business growth but also adds to fixed costs.

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4. Recommendations

• Monitor Debt Levels: Keep a close watch on long-term liabilities and ensure debt servicing remains manageable. Consider refinancing options to reduce interest costs or lengthen repayment terms if needed.

• Improve Equity Base: Although growing, the equity base is still modest. Retaining more profits or considering additional capital injection could strengthen the balance sheet and reduce leverage risks.

• Cash Flow Management: Continue to maintain positive working capital and monitor cash flow closely, especially given the retail sector's susceptibility to fluctuations in sales and inventory turnover.

• Cost Management: With a small but growing workforce, ensure operational efficiency and cost control to maintain profitability.

• Strategic Planning: Explore opportunities to increase sales and margins, possibly through product diversification or enhanced supplier terms, to build financial resilience.

• Regular Financial Reviews: Conduct periodic financial health checks beyond statutory filings to identify early signs of distress and adapt strategies proactively.

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Medical Analogy Summary:
AROOS SUPERMARKET LTD shows a "healthy pulse" with steady asset growth and robust working capital, akin to a patient with stable vital signs. However, the "symptoms" of significant long-term liabilities resemble a mild chronic condition requiring ongoing monitoring and management to prevent deterioration. With prudent financial care and attention, the company’s prognosis is favorable for sustained growth and stability.

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