ASPOLL DEVELOPMENTS LIMITED

Executive Summary

Aspoll Developments Limited is a young company with a fragile financial position characterized by minimal net current assets and very low cash reserves. The company’s financial health is stable but vulnerable, requiring focused cash flow management and capital strengthening to avoid liquidity crises. With timely corrective action, the company can improve its financial resilience and support future growth.

ASPOLL DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13100020

Analysis Date: 2025-07-20 11:52 UTC

Financial Health Assessment Report for Aspoll Developments Limited

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1. Financial Health Score: C

Explanation:
Aspoll Developments Limited demonstrates a fragile financial condition. While it remains operational and compliant with filings, the company shows minimal net assets and working capital, signalling a tenuous liquidity position. The balance sheet exhibits a very narrow margin of safety, akin to a patient with borderline vital signs requiring close monitoring and intervention.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Current Assets	£10,332	Low level of assets readily convertible to cash; dominated by debtors, which may delay liquidity.
Cash in Hand	£3	Extremely low cash reserves—a symptom of tight cash flow and potential cash crunch risk.
Debtors	£10,329	High proportion of current assets tied up in receivables, possibly indicating slow collections.
Current Liabilities	£10,278	Nearly equal to current assets, indicating working capital is barely positive.
Net Current Assets	£54	Very thin buffer to meet short-term obligations; vulnerability to unexpected expenses.
Shareholders’ Funds	£54	Equity is minimal, showing limited capital cushion and possible undercapitalization.
Share Capital	£2	Nominal share capital, typical for micro-entities but indicative of low initial funding.
Filing Status	Up to date	No overdue filings or penalties—a positive sign of compliance.
Company Age	~3 years	Newly established; early years often involve tight cash flow and capital building.

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3. Diagnosis

Aspoll Developments Limited exhibits symptoms of a business in its infancy stage with precarious financial health. The near-zero net current assets indicate a fragile liquidity position — akin to a patient with borderline vital signs where even a minor shock (e.g., delayed payments, unexpected expenses) could cause distress. The heavy concentration of current assets in debtors suggests the company may have challenges in converting sales to cash quickly, potentially straining operational cash flow.

The negligible cash reserves further highlight vulnerability to short-term financial pressures. Shareholders’ funds are minimal, which can limit the company's ability to absorb losses or invest in growth without external financing. However, the company is maintaining compliance with regulatory requirements, which is a positive sign of governance and reduces risk of penalties.

Overall, the financial picture resembles a patient who is stable but frail and requiring close management of cash flow and working capital to avoid deterioration.

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4. Recommendations

To improve financial wellness and strengthen the company’s financial health, consider the following actionable steps:

• Enhance Cash Flow Management:
  Prioritize faster collection of receivables. Implement stricter credit control policies to reduce debtor days and improve liquidity.

• Increase Cash Reserves:
  Build up cash balances to create a buffer against unforeseen expenses. This might involve negotiating better payment terms with suppliers or seeking short-term financing.

• Strengthen Capital Base:
  Consider injecting additional equity or securing long-term funding. This will build shareholder funds and provide a cushion against losses.

• Cost Control and Efficiency:
  Review operating expenses to identify savings that preserve cash. Lean operations can help maintain positive working capital.

• Regular Financial Monitoring:
  Establish routine measurement of liquidity ratios and working capital to detect early signs of distress.

• Plan for Growth:
  As a real estate trading company, evaluate market conditions and pipeline projects carefully to avoid overextension.

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Medical Analogy Summary:
Aspoll Developments Limited shows signs of a "patient" with fragile vital signs—current assets and equity barely cover immediate liabilities, and cash flow is constrained. Timely interventions focused on improving liquidity and capital structure are essential to prevent financial "illness" and promote sustainable growth.

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