ASHYZ LTD

Executive Summary

ASHYZ LTD shows a sound financial position for its first year, with positive working capital and equity indicating good short-term financial health. The company should focus on building cash reserves and retained earnings to strengthen resilience as it grows. Overall, ASHYZ LTD is financially stable but should adopt proactive financial management strategies to ensure sustainable future growth.

ASHYZ LTD - Analysis Report

Company Number: 14705139

Analysis Date: 2025-07-29 19:51 UTC

Financial Health Assessment for ASHYZ LTD

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1. Financial Health Score: B

Explanation:
ASHYZ LTD presents a generally sound financial position for a micro-entity in its first year of operation. It maintains positive net current assets and shareholders’ funds, indicating an ability to meet short-term obligations. The score B reflects a stable financial “vital sign” with room for improvement in building reserves and liquidity for future operational resilience.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	67,291	Healthy cash equivalents, receivables, or stock available.
Current Liabilities	61,092	Short-term debts and payables that require timely settlement.
Net Current Assets	6,199	Positive working capital - company can cover short-term debts.
Total Assets Less Current Liabilities	6,199	Reflects net operational asset base after short-term debts.
Accruals and Deferred Income	1,500	Obligations or income timing adjustments to monitor.
Net Assets / Shareholders’ Funds	4,699	Indicates positive equity, representing owner’s stake.
Average Number of Employees	1	Very lean operation, consistent with micro-entity status.

Interpretation:
The company shows “healthy cash flow” signs with more current assets than liabilities, a key indication that it is not facing immediate liquidity distress. The modest net assets and shareholders’ funds suggest early-stage capitalization but also limited retained earnings or reserves. The accruals are minor, indicating few outstanding obligations beyond typical operational cycles.

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3. Diagnosis

ASHYZ LTD is in the initial growth phase, having been incorporated in March 2023 and filing its first set of accounts for the year ending March 2024. The financial “symptoms” indicate a stable start with:

• Positive working capital, reflecting the ability to manage short-term cash needs.
• Modest equity base, suitable for a micro business but requiring careful management to build resilience.
• No audit required, consistent with micro-entity status, which limits detailed external financial scrutiny but reduces compliance burden.
• Single director and sole significant control indicate centralized decision-making, which can be efficient but also poses concentration risk.
• No overdue filings or penalties, showing good compliance health.

There are no “red flags” such as negative net assets or overdue liabilities that would suggest financial distress or insolvency risk at this early stage.

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4. Recommendations

To enhance financial wellness and ensure sustainability, ASHYZ LTD should consider:

1. Strengthen Cash Reserves:
   Build on current assets to create a buffer against unexpected expenses or revenue fluctuations. This could involve tighter credit control or cost management.

2. Monitor Working Capital:
   Keep close watch on current liabilities to ensure timely payments and avoid liquidity crunches. Use forecasting tools to predict cash flow needs.

3. Build Retained Earnings:
   Aim to generate profits that are retained within the company to increase net assets over time, improving financial stability.

4. Diversify Management Oversight:
   Consider appointing additional directors or advisers to mitigate concentration risk and bring diverse expertise.

5. Plan for Growth:
   As the company grows, prepare for transition from micro to small entity status by improving accounting systems and financial reporting.

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

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