Company Number: 12601280

Analysis Date: 2025-07-20 15:59 UTC

Financial Health Assessment Report for Atkinson Financial Planning Limited (as of 31 May 2024)

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1. Financial Health Score: B

Explanation:
The company displays a generally healthy financial position with solid net assets and positive working capital, indicating good liquidity and solvency. However, the modest scale of operations, relatively low fixed assets, and the absence of detailed profit and loss data (due to small company exemption) suggest caution. The score reflects a stable but developing financial condition typical of a young SME.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Cash at Bank	£51,546	Strong cash reserves, indicating healthy cash flow buffer.
Current Liabilities	£19,367	Manageable short-term obligations, well covered by cash.
Net Current Assets	£32,179	Positive working capital, sign of good liquidity ("healthy pulse").
Total Assets Less Current Liabilities	£45,509	Indicates overall asset strength after covering short-term debts.
Net Assets (Shareholders’ Funds)	£42,976	Positive equity base, showing business “heart” is strong.
Share Capital	£1.00	Minimal paid-up capital, common in private SMEs.
Tangible Fixed Assets (Net Book Value)	£13,330	Modest investment in physical assets, indicating operational base.
Provisions for Liabilities	£2,533	Small anticipated future obligations, indicating prudent management.
Employee Count	2 (average)	Small team size consistent with small company status.

Trends:

• Net assets increased from £30,243 in 2023 to £42,976 in 2024, a strong sign of growth and retained profitability.
• Cash position increased by approximately £10,000, reflecting improved liquidity.
• Current liabilities reduced, lowering short-term risk.

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3. Diagnosis

Atkinson Financial Planning Limited shows robust financial health for a small private limited company operating in financial management. The "vital signs" are positive: a healthy cash balance, strong net current assets, and growing net assets indicate the business is managing its finances well and maintaining solvency without distress signals such as negative working capital or excessive short-term liabilities.

The company’s balance sheet acts like a healthy cardiovascular system—ample cash flow (blood) is circulating, supporting operational needs and cushioning against shocks. The increase in retained earnings suggests profitable operations even though detailed profit and loss accounts are not publicly available (due to small company exemptions).

The relatively low share capital is typical and not a concern, as the strength lies in retained earnings and prudent management of liabilities. The presence of modest tangible fixed assets shows the business has invested in its operational infrastructure but is not over-leveraged.

From the governance perspective, directors and significant controllers appear stable with no indication of disqualifications or governance red flags.

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4. Recommendations

To maintain and improve financial wellness, consider the following actions:

• Cash Flow Monitoring: Continue rigorous monitoring of cash flow to ensure liquidity remains strong, especially if business scales up. Healthy cash flow is the lifeblood of business operations.
• Build Reserves: Strengthen provisions and reserves to prepare for any unforeseen liabilities or economic downturns, enhancing financial immunity.
• Profit & Loss Transparency: Although exempt, voluntarily preparing detailed profit and loss statements can help management better diagnose operational health and identify areas for cost control or revenue enhancement.
• Asset Investment: Review fixed asset utilization and consider strategic investments that could improve operational efficiency or service capacity.
• Growth Planning: With a strong balance sheet, cautiously explore growth opportunities that do not jeopardize liquidity or overextend debt capacity.
• Compliance Vigilance: Maintain timely filing of accounts and confirmation statements to avoid penalties and ensure transparency with stakeholders.

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