ASSESSMENT TECHNOLOGIES LIMITED

Executive Summary

ASSESSMENT TECHNOLOGIES LIMITED faces significant financial challenges, including negative net assets and liquidity shortfalls, which threaten its solvency. While compliance and operational activity continue, urgent action on cash management and capital structure is needed to restore financial health and secure the company’s future viability.

ASSESSMENT TECHNOLOGIES LIMITED - Analysis Report

Company Number: 12991990

Analysis Date: 2025-07-20 12:50 UTC

Financial Health Assessment for ASSESSMENT TECHNOLOGIES LIMITED

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1. Financial Health Score: D

Explanation:
The company shows a significant negative net asset position (equity deficit), which signals financial distress. Despite being current on filings and maintaining a stable employee count, the balance sheet reveals "symptoms of distress" with liabilities far exceeding assets. This warrants careful attention and corrective action.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	124	Very low, indicating minimal long-term investment or capital base. Healthy companies typically have some fixed assets.
Current Assets	2,553	Very low liquid resources; potential liquidity concerns.
Current Liabilities	69,608	High short-term obligations; a "red flag" for liquidity strain.
Net Current Assets	-67,055	Negative working capital—means immediate debts exceed available liquid assets, indicating cash flow stress.
Total Net Assets (Equity)	-66,931	Negative shareholders’ funds; company is technically insolvent on a balance sheet basis.
Employee Count	2	Small workforce; manageable but fixed overheads may be a burden.
Filing Status	Up to date	No delays or penalties, indicating good compliance health.

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3. Diagnosis

ASSESSMENT TECHNOLOGIES LIMITED exhibits clear financial "symptoms of distress." The negative net assets indicate that the company’s liabilities exceed its assets by approximately £67k, which is akin to a patient whose vital signs show dangerously low levels despite appearing stable externally.

The company holds minimal fixed and current assets, suggesting limited investment or cash reserves, while liabilities, especially current liabilities, are disproportionately high. This imbalance implies a liquidity crunch—an inability to meet short-term obligations from available resources—which can lead to insolvency if not addressed.

The small size of the company (micro-entity) and limited employee base imply low operational scale, which may constrain revenue generation and cash inflows. However, the fact that statutory filings are current and the company remains active is a positive sign that management is maintaining compliance and operational functionality.

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4. Recommendations

Immediate actions to stabilize financial health:

• Liquidity Improvement: Seek to increase cash or liquid resources promptly. This could involve renegotiating payment terms with creditors to delay outflows or accelerating receivables collection if applicable.

• Capital Injection: Consider equity funding or shareholder loans to improve net asset position—akin to administering a vitamin boost to improve the company’s health.

• Cost Control: Review and reduce fixed and variable costs to preserve cash, including evaluating employee costs, supplier contracts, and overheads.

• Business Model Review: Analyze revenue streams and profitability to identify areas for improvement or diversification. Like diagnosing underlying causes, this is vital to restore sustainable financial health.

• Regular Monitoring: Implement monthly cash flow forecasting and financial reviews to detect early warning signs and respond proactively.

• Professional Advice: Engage with financial advisors or insolvency practitioners if liquidity pressures persist to explore restructuring options before crisis escalates.

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Summary

ASSESSMENT TECHNOLOGIES LIMITED’s financial statements reveal a concerning state of financial health, marked by negative equity and strained liquidity. Immediate corrective measures focusing on cash flow management, capital strengthening, and cost control are essential to prevent deterioration into insolvency. Maintaining compliance is a positive foundation, but the company must act swiftly to restore balance sheet and operational vitality.

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