ATB ECOMMERCE LTD

Executive Summary

ATB ECOMMERCE LTD exhibits a marked improvement in financial health with strong liquidity and positive net assets as of June 2024, signaling a stable and recovering business. While the absence of employees suggests a lean operation, the company benefits from a solid equity base and manageable liabilities. Continued focus on cash flow management, operational scaling, and financial transparency will be key to sustaining and enhancing financial wellness.

ATB ECOMMERCE LTD - Analysis Report

Company Number: 12678571

Analysis Date: 2025-07-29 14:53 UTC

Financial Health Assessment for ATB ECOMMERCE LTD as of 30 June 2024

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1. Financial Health Score: B

Explanation:
ATB ECOMMERCE LTD demonstrates solid improvement in its financial position compared to previous years, particularly with a strong recovery in net current assets and shareholders’ funds after a period of very tight liquidity. While the company operates under a Micro entity status (with minimal filing requirements and small scale), its current financial metrics suggest a generally healthy financial condition, albeit with some caution warranted due to prior low asset levels. The score 'B' reflects good financial health, with room for improvement in asset utilization and revenue generation visibility.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	47,640	Healthy short-term resources available
Current Liabilities	15,320	Manageable immediate obligations
Net Current Assets	32,320	Positive working capital indicates liquidity
Total Net Assets	32,320	Positive equity base; company’s net worth
Shareholders’ Funds	32,320	Reflects accumulated retained earnings and equity
Average Number of Employees	0	No staff employed; minimal operating costs

Interpretation of Vital Signs:

• Liquidity (Net Current Assets): The company has a strong positive working capital position (£32,320), signaling a "healthy cash flow" scenario where short-term assets sufficiently cover short-term liabilities. This is a crucial indicator that the company can meet its operational obligations without distress.
• Equity Position: The increase from £365 in 2023 to £32,320 in 2024 suggests either retained profits, capital injection, or revaluation in assets. This marks a significant improvement in financial robustness and shareholder confidence.
• Fixed Assets: Not explicitly stated for 2024 but prior years showed some fixed assets (~£34,000 in 2023). The current presentation seems to focus on current assets, indicating possible disposal or reclassification.
• Employees: Zero employees implies the company may rely on contractors, automation, or minimal operational activity, which can reduce overhead costs but might limit growth potential.

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3. Diagnosis

• Symptoms of Financial Recovery: The company’s financials show a noteworthy turnaround from marginal net assets (£365 in 2023) to a strong positive net asset position (£32,320 in 2024). This suggests either capital restructuring or improved profitability, both positive signs of recovery and business stabilization.
• Liquidity Health: The positive net current assets indicate that the company is not under immediate financial distress, with sufficient liquid assets to cover short-term debts—a "healthy cash flow" sign.
• Operational Status: With no employees, the company likely operates with minimal fixed costs, which may enhance financial resilience but also signals limited operational scale.
• Risk Factors: The absence of detailed profit and loss data or revenue figures limits the ability to assess profitability trends and cash flow sustainability fully. Also, the company's reliance on directors and possibly limited operational activity may pose risks if market conditions change.
• Governance: The company directors are two individuals appointed at incorporation with no disqualifications or governance concerns noted, which supports stable management oversight.

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4. Recommendations

• Improve Transparency on Revenue and Profitability: Although Micro-entity accounts limit disclosure, consider maintaining internal management accounts to monitor revenue streams, profitability, and operational cash flows closely. This will help in early detection of any "symptoms of distress."
• Build Operational Capacity: Explore the potential for strategic hiring or outsourcing to scale operations if growth is an objective, balancing cost control with capability enhancement.
• Strengthen Asset Base: Assess opportunities to invest in fixed assets or intellectual property that could enhance long-term value and provide competitive advantage.
• Maintain Strong Working Capital Management: Continue prudent management of current assets and liabilities to preserve liquidity, ensuring the company can handle short-term obligations comfortably.
• Plan for Growth and Contingencies: Develop a financial plan including budgets and forecasts to prepare for market changes, ensuring the company remains financially resilient.
• Regular Compliance and Reporting: Stay ahead of filing deadlines and statutory requirements to avoid penalties and maintain good standing with Companies House.

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