ASL PROPERTIES NORTH WEST LIMITED

Executive Summary

ASL PROPERTIES NORTH WEST LIMITED exhibits strong short-term liquidity and improving working capital, signaling good financial health in daily operations. However, the significant long-term liabilities and modest equity base highlight potential risks that require careful debt management and capital strengthening. With focused financial stewardship, the company is positioned for stable growth and resilience.

ASL PROPERTIES NORTH WEST LIMITED - Analysis Report

Company Number: 13839373

Analysis Date: 2025-07-20 12:06 UTC

Financial Health Assessment of ASL PROPERTIES NORTH WEST LIMITED

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1. Financial Health Score: B-

Explanation:
The company shows signs of growth and improving liquidity, which is a positive "pulse" in financial health. However, the presence of significant long-term liabilities and relatively low net assets reflect some "symptoms of financial strain." The overall condition suggests a company that is financially stable but should carefully monitor its debt obligations.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£254,756	Strong increase from previous year; healthy cash and receivables position.
Current Liabilities	£41,153	Increased, but manageable relative to current assets.
Net Current Assets	£213,603	Very healthy working capital; indicates strong short-term liquidity.
Creditors > 1 year	£198,925	Significant long-term liabilities; "chronic condition" requiring care.
Net Assets (Equity)	£13,958	Positive but low; limited buffer against financial shocks.
Shareholders' Funds	£13,958	Mirrors net assets; equity capital is modest but positive.
Profit/Loss Trends	Not disclosed	No explicit P&L data, but net assets increased indicating retained profits.
Employee Count	0	No employees; possibly subcontracting or asset-holding focus.

Interpretation of Vital Signs:

• The company’s liquidity (cash and current assets) shows a strong "heartbeat," indicating ability to meet short-term obligations.
• The jump in current assets from £12k to £254k is a positive sign—could indicate receipt of cash or receivables.
• However, the large creditors due after one year (£198k) represent a "chronic ailment" that could strain future cash flow if not managed.
• The net asset base is positive but small relative to liabilities, suggesting limited equity cushion.

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3. Diagnosis

ASL PROPERTIES NORTH WEST LIMITED is in a stable but cautious financial condition. The company demonstrates a "healthy cash flow" with strong net current assets, which is critical for daily operations and short-term solvency. The increase in current assets and net current assets year-on-year is a positive sign of operational or transactional growth.

However, the substantial long-term liabilities indicate a reliance on external financing or debt that poses future risks. This "symptom of distress" requires management attention to ensure liabilities can be serviced without compromising liquidity.

The company has no employees, which could imply a lean structure focused on property management and real estate transactions, typical in its SIC codes (98000 and 68100). The low equity base, while positive, means the company has limited ability to absorb unexpected losses or financial shocks.

Governance appears strong with two directors/shareholders actively controlling the company, which reduces "governance risk."

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4. Recommendations

• Manage Long-Term Debt: Develop a clear plan to reduce or refinance creditors due after one year to alleviate future cash flow pressure. This might include negotiating terms or seeking alternative financing with better conditions.

• Build Equity Buffer: Consider retaining more earnings or injecting additional capital to strengthen shareholders’ funds and improve the company’s resilience against financial shocks.

• Cash Flow Monitoring: Continue regular monitoring of cash flows and working capital to maintain the healthy liquidity "pulse" observed.

• Strategic Growth: Explore opportunities to increase profitability or diversify income streams to improve net asset growth beyond current levels.

• Risk Assessment: Conduct a stress test on financial obligations, especially related to property market fluctuations, given the industry focus.

• Compliance and Reporting: Maintain timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.

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