ASK UK ACCOUNTANCY LTD

Executive Summary

ASK UK Accountancy Ltd shows a positive trajectory with improving liquidity and growing net assets, indicating a stable and healthy financial condition for a micro-entity. While the company’s financial "vital signs" are strong, its narrow working capital margin suggests a need for cautious cash flow management and continued prudent growth strategies.

ASK UK ACCOUNTANCY LTD - Analysis Report

Company Number: 13481532

Analysis Date: 2025-07-29 17:40 UTC

Financial Health Assessment: ASK UK ACCOUNTANCY LTD (as at 30 April 2024)

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1. Financial Health Score: B

Explanation:
ASK UK Accountancy Ltd demonstrates a solid and improving financial position typical for a micro-entity in early growth stages. The company has shown steady asset growth, positive net current assets, and increased shareholder funds. However, the scale of operations remains small with limited working capital, which warrants cautious optimism rather than an A-grade. The company is financially stable with no overdue filings or signs of distress, but the relatively thin buffer in liquidity suggests room for strengthening.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	18,734	16,631	Moderate investment in long-term assets; stable.
Current Assets	25,045	10,971	Significant increase, indicating better liquidity.
Current Liabilities	22,653	12,678	Increased short-term obligations but manageable.
Net Current Assets	2,735	-1,297	Shift from negative to positive working capital; healthy cash flow sign.
Total Assets less Current Liabilities	21,469	15,334	Growth in net assets, shows strengthening balance sheet.
Net Assets / Shareholders Funds	19,652	13,796	Equity increased, reflects retained earnings or capital injection.
Average Staff Numbers	1	1	Micro-scale operation, highly focused business.

Vital Signs Interpretation:
The company displays the "heartbeat" of a growing small business: increasing assets and equity, with working capital moving from a deficit to a positive figure. This indicates improved liquidity and an ability to meet short-term obligations without strain. The steady increase in fixed assets suggests reinvestment in operational capacity.

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3. Diagnosis

Overall Financial Condition:
ASK UK Accountancy Ltd is in a stable financial condition, showing signs of recovery and growth from prior years. The company moved from a negative working capital position in 2023 to a positive one in 2024, which is a vital symptom of improved operational cash flow and better short-term financial health. The increase in shareholders' funds and net assets reflects either retained earnings or capital injections by the owner, Mr Ashish Karia, who holds full control. The business operates as a micro-entity with a single employee (the director), which aligns with its industry focus in tax consultancy and accounting services.

There are no signs of financial distress such as overdue filings, deficits, or excessive liabilities. However, the company’s liquidity position, while improved, remains relatively tight with net current assets of £2,735. This means the business still operates with a narrow margin for error in cash flow management, similar to a patient recovering from illness but who must continue monitoring diet and exercise closely.

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4. Recommendations

1. Strengthen Working Capital:
   Continue to build up current assets relative to current liabilities to create a more robust cash buffer. Consider negotiating longer payment terms with creditors or accelerating receivables to improve liquidity further.

2. Maintain Tight Cost Controls:
   As a micro-entity, overheads and operational costs should be carefully monitored to avoid cash flow strain, especially as the business grows.

3. Plan for Growth Investments Prudently:
   Incremental investments in fixed assets appear prudent. Maintain a balance to avoid over-leveraging or tying too much cash in illiquid assets.

4. Regular Financial Monitoring:
   Implement regular internal financial reviews to detect any early symptoms of distress, such as declining net current assets or rising liabilities.

5. Consider Diversification of Revenue Streams:
   To reduce reliance on a single director and small staff base, explore options for expanding services or client base, which can add financial resilience.

6. Ensure Compliance and Timely Filings:
   Keep current with Companies House filings and statutory obligations to avoid penalties and maintain good standing.

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