Company Number: 13303811

Analysis Date: 2025-07-19 12:15 UTC

Financial Health Assessment Report for ASKM LTD

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1. Financial Health Score: B

Explanation:
ASKM LTD shows significant improvement in its financial metrics over the latest financial year, moving from a previously stressed position to a more robust and healthy state. While the company demonstrates solid asset growth and strengthened working capital, the micro-entity status and relatively small scale limit the overall rating to a "B" grade, reflecting good health but with room for ongoing vigilance and improvement.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	95,588	Increased asset base indicating investment in long-term resources; positive sign of growth.
Current Assets	109,899	Healthy liquidity; cash or near-cash resources increased substantially year-on-year.
Current Liabilities	25,929	Reduced short-term obligations, easing pressure on cash flow compared to prior year.
Net Current Assets	83,970	Positive working capital ("healthy blood flow") showing ability to cover short-term debts.
Total Assets less Current Liabilities	179,558	Strong net asset position, reflecting solid financial foundation.
Net Assets / Shareholders’ Funds	176,758	Strong equity base, consistent with a company in a stable financial state.
Average Number of Employees	5	Small workforce consistent with micro entity status, manageable operational scale.

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3. Diagnosis: Financial Health Status

Symptoms Analysis:

• Improvement in Working Capital: The company’s net current assets improved dramatically from a negative £41,344 in 2022 to a positive £83,970 in 2023. This indicates that ASKM LTD has alleviated short-term liquidity stress and has a better buffer to meet its immediate obligations.
• Asset Growth: Fixed assets rose by ~45% from £65,934 to £95,588, showing capital investment which may enhance operational capacity or efficiency.
• Reduction in Current Liabilities: Short-term debts have decreased significantly from £101,124 to £25,929, suggesting effective management of creditor obligations or repayment of debts.
• Stable Equity Position: Net assets jumped substantially from £23,270 to £176,758, reflecting retained earnings or capital injections strengthening the company’s net worth.
• Micro Entity Status: The small size and scale inherently limit the complexity and financial leverage, but also reduce exposure to large financial risks.

Underlying Condition:
ASKM LTD appears to have undergone a financial recovery or restructuring phase between 2022 and 2023, resolving prior liquidity and solvency issues ("symptoms of distress"). The company now shows signs of a "healthy pulse" in its cash flow and balance sheet position.

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4. Recommendations: Path to Improved Financial Wellness

• Maintain and Monitor Working Capital: Continue careful management of current assets and liabilities to preserve positive working capital. Cash flow monitoring is critical to avoid any return of liquidity stress.
• Leverage Asset Base Efficiently: Ensure the fixed assets acquired are contributing effectively to revenue generation and profit margins; avoid idle or underutilized assets draining resources.
• Cost Control: With a small team, keep overheads aligned with revenue growth to maintain operational efficiency. Consider cost-saving initiatives if profits are under pressure.
• Growth Strategy: Explore opportunities to scale sales, especially given the retail sector classification. Expanding customer base or product lines may increase turnover within micro or small company thresholds.
• Prepare for Scaling: If growth ambitions exist beyond micro limits, plan for enhanced financial controls and possibly audited accounts to ensure transparency and investor confidence.
• Director Oversight: Given the director’s sole control, maintaining strong governance and clear financial reporting will support sustainable management decisions.

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