ASHTREE FIELDS LTD

Executive Summary

Ashtree Fields Ltd exhibits a sound financial condition for a newly formed micro-entity with positive liquidity and solvency indicators. The company's financial health is stable but embryonic, reflecting its early operational stage. Continued focus on cash flow management, governance, and strategic growth will be crucial to sustaining and improving financial wellness.

ASHTREE FIELDS LTD - Analysis Report

Company Number: 14679440

Analysis Date: 2025-07-29 12:43 UTC

Financial Health Assessment for ASHTREE FIELDS LTD

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1. Financial Health Score: B

Explanation:
Ashtree Fields Ltd, being a newly incorporated micro-entity, demonstrates a stable initial financial position with positive working capital and net assets. The company shows no signs of financial distress but is in the very early stages of operation with limited financial data available. The "B" grade reflects a healthy but nascent financial condition with room to grow and mature.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	4,343	Adequate short-term resources to cover immediate obligations
Current Liabilities	1,800	Obligations due within one year; manageable relative to assets
Net Current Assets (Working Capital)	2,543	Positive, indicating liquidity and ability to meet short-term debts
Net Assets (Shareholders' Funds)	2,543	Reflects total value owned by shareholders after liabilities
Number of Employees	1	Small workforce consistent with micro-entity classification
Account Category	Micro	Simplified reporting; limited scale but easier compliance
Company Age	1 year	Early stage; limited financial history for trend analysis

Interpretation of Vital Signs:

• The positive net current assets ("working capital") signal a healthy cash flow position — the company has more current assets than current liabilities, which is akin to a patient having a strong pulse rate and good blood pressure.
• Net assets are positive, showing the company is solvent and not overburdened with debt.
• Being a micro-entity with only one employee, the company is in its infancy and likely building its operational foundation.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity: The company shows no signs of liquidity stress. With current assets more than double current liabilities, Ashtree Fields Ltd has a "healthy cash flow" symptom, meaning it can cover short-term debts comfortably.
• Solvency: Positive net assets confirm that the company has an adequate buffer of equity over liabilities, implying it is solvent and financially stable at this stage.
• Operating Scale: The micro-entity status and single employee indicate a small scale of operations, typical for a startup or early-stage business.
• Audit Exemption: The company benefits from the small company exemptions, reducing compliance costs but also limiting detailed external scrutiny — this is a "mild symptom" requiring careful internal controls.
• Control and Governance: Ownership and control are concentrated with Mr Andrew Mitchell (75-100% shares and voting rights), which can streamline decision-making but also concentrates risk if not balanced with good governance practices.
• Financial History: As the company is newly incorporated (less than 1 year old), there is limited trend data, which means the prognosis relies heavily on current financial health and future business plans.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Monitor Cash Flow Diligently: Maintain the positive working capital by regularly reviewing receivables and payables to avoid liquidity issues as the company grows.
• Build a Financial Cushion: Aim to increase net assets over time by retaining earnings or injecting capital to strengthen solvency and provide a buffer against unforeseen expenses.
• Implement Governance Best Practices: Although ownership is concentrated, consider formalizing internal controls and reporting mechanisms to mitigate risks associated with single-person control.
• Plan for Growth: As a micro-entity, plan for scaling operations carefully, including managing staff increases and compliance requirements to avoid operational "stress symptoms."
• Engage Professional Advice: Continue using accountants for tax and financial reporting to ensure compliance and benefit from financial planning advice.
• Prepare for Market Challenges: As agents specialized in sales of particular products, stay alert to market conditions and maintain flexibility to pivot if necessary.
• Maintain Timely Filings: Ensure accounts and confirmation statements are filed promptly to avoid penalties and maintain good standing.

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