Company Number: 13731842

Analysis Date: 2025-07-19 12:21 UTC

Financial Health Assessment for ARQUATA LTD as of 30 November 2024

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1. Financial Health Score: B

Explanation:
ARQUATA LTD demonstrates solid financial stability with positive net assets and healthy working capital. The company’s net assets have remained steady over the past years, and its current asset base is comfortably above current liabilities, indicating good liquidity. However, some reduction in fixed assets and an increase in current liabilities suggest areas to monitor closely. Overall, the financial "vitals" are good but with room for strengthening fixed asset management and controlling short-term obligations.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Fixed Assets	26,783	Slight decrease from prior year (£33,698), possibly indicating asset depreciation or disposals.
Current Assets	63,354	Increased from £46,202, a positive sign showing improved liquid resources or receivables.
Current Liabilities	19,657	Increased from £9,436, a cautionary signal to monitor short-term debts and payment obligations.
Net Current Assets	43,697	Healthy buffer, indicating strong working capital to cover short-term liabilities.
Net Assets (Equity)	70,480	Steady net worth, reflecting stability in shareholder equity and retained earnings.
Average Employees	2	Small workforce consistent with micro company status; operational scale is modest.

Interpretation in Medical Terms:
The company shows a "healthy pulse" with good liquidity (net current assets) that can comfortably meet short-term obligations. The "body weight" (net assets) is stable, showing no signs of financial malnutrition. However, the "bones" (fixed assets) have slightly weakened, which may require attention to asset replacement or investment.

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3. Diagnosis

ARQUATA LTD is financially stable and solvent with no evident symptoms of distress such as negative net current assets or declining shareholder funds. The increase in current liabilities warrants monitoring to ensure it does not develop into liquidity strain. The decrease in fixed assets could suggest aging equipment or lack of reinvestment, which might impact future operational capacity if not addressed. The company’s controlled size, stable ownership structure, and compliance with filing deadlines reflect sound governance and operational discipline.

Overall, the financial "health" is good for a micro entity, with no immediate risks detected but some early signs that suggest proactive management in asset maintenance and liability control.

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4. Recommendations

• Monitor and Manage Current Liabilities:
  Keep a close eye on short-term debts and creditor payments to avoid liquidity stress. Consider negotiating longer payment terms or improving cash collection cycles.

• Asset Reinvestment Plan:
  Investigate reasons for the decline in fixed assets. Develop a plan for reinvestment or replacement to maintain operational efficiency and avoid future capacity issues.

• Cash Flow Management:
  Ensure that cash flow remains "healthy" by forecasting and managing working capital carefully. This will sustain the company’s ability to meet obligations and seize growth opportunities.

• Maintain Compliance and Governance:
  Continue timely filings and maintain good corporate governance practices to support the company’s credibility and operational continuity.

• Growth and Diversification Strategy:
  Given the micro size and small employee base, consider strategic steps for measured growth, possibly leveraging the management consultancy SIC code to expand service offerings.

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