ATIX SOLUTIONS LIMITED

Executive Summary

ATIX Solutions Limited demonstrates a stable financial foundation typical of a newly formed micro-entity in IT consultancy, with positive net assets and healthy liquidity indicating no immediate financial distress. While the company’s small scale and lack of profitability data limit deeper insights, its prudent management of assets and liabilities bodes well for future stability. To enhance financial health, focus should be placed on developing detailed profit monitoring, managing director loans, and preparing for measured growth.

ATIX SOLUTIONS LIMITED - Analysis Report

Company Number: 14989131

Analysis Date: 2025-07-29 18:58 UTC

Financial Health Assessment: ATIX SOLUTIONS LIMITED

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1. Financial Health Score: B

Explanation:
ATIX Solutions Limited, a micro-entity established in 2023, shows a solid initial financial footing with positive net assets and healthy working capital. As a newly incorporated company with modest asset size and liabilities, the financial "vital signs" indicate a stable start without distress symptoms. However, the limited scale, director loans, and early stage of operations suggest caution; growth and profitability metrics are not yet available, limiting a higher score.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,077	Minimal investment in long-term assets, typical for a start-up micro company in IT consultancy.
Current Assets	8,184	Includes cash or receivables; sufficient to cover short-term obligations.
Current Liabilities	3,751	Obligations due within one year; manageable given current assets.
Net Current Assets	4,433	Positive working capital indicates healthy short-term liquidity ("healthy cash flow").
Accruals/Deferred Income	360	Small amounts of liabilities not yet due, normal for ongoing operations.
Net Assets (Shareholders’ Funds)	5,150	Positive equity base; company is not insolvent and has a buffer to absorb losses if needed.
Director Loan	-1,995	Director advance to company, showing internal financing support, but also a liability to director.

Additional Observations:

• No audit requirement under micro-entity rules reduces compliance burden but limits detailed financial scrutiny.
• One employee on average indicates very lean operations.
• Two directors appointed at incorporation, with one resignation in April 2024, possibly reflecting early governance adjustments.
• No overdue filings or penalties, indicating compliance discipline.

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3. Diagnosis: Financial Health and Business Condition

• Liquidity & Solvency: The company displays a good liquidity position with net current assets of £4,433, meaning it can cover its short-term debts comfortably—no signs of liquidity distress. Positive net assets (£5,150) reflect solvency and an absence of financial strain or insolvency symptoms.

• Capital Structure: The equity base is solid relative to liabilities, with director loans indicating initial funding support from insiders, a common feature in start-ups. The director loan balance of nearly £2,000 is manageable but should be monitored to ensure it does not become an overhang.

• Operational Status: As a micro-entity IT consultancy, capital expenditures are low, reflecting the service-oriented nature of the business. The small team size is typical but may limit capacity for growth without further investment.

• Growth & Profitability: There is no profit and loss data available, so the company’s earnings performance and revenue trends are unknown. This absence is not unusual for a first-year micro company but represents an information gap regarding operational profitability.

• Governance: The presence of two PSCs (persons with significant control) owning 25-50% shares each, along with the right to appoint/remove directors, indicates balanced control but potential concentration risks if disputes arise.

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4. Recommendations for Financial Wellness Improvement

• Develop Profit & Loss Reporting: Establish regular tracking of revenues, costs, and profitability to detect financial "symptoms" early and enable strategic decision-making.

• Monitor Director Loans: Formalize terms for director advances to avoid unclear liabilities; consider repayment or conversion to equity if appropriate.

• Cash Flow Management: Maintain positive working capital; ensure receivables collection and payables management are efficient to sustain healthy liquidity.

• Plan for Growth Investment: If business expands, plan capital expenditures and staffing carefully to avoid overextension of resources.

• Governance and Controls: Maintain clear documentation of shareholder agreements and director roles to prevent governance conflicts.

• Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain corporate good standing.

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