GENESIS AKS LTD

Executive Summary

GENESIS AKS LTD exhibits strong short-term liquidity and improving net asset position, reflecting a generally healthy financial condition for a young company. The absence of employees and limited operational data suggest cautious monitoring is warranted as the business scales. Prompt actions to enhance revenue transparency and diversify funding will support sustained financial wellness.

GENESIS AKS LTD - Analysis Report

Company Number: 14495827

Analysis Date: 2025-07-29 21:05 UTC

Financial Health Assessment Report for GENESIS AKS LTD

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1. Financial Health Score: B

Explanation:
GENESIS AKS LTD demonstrates a solid financial footing with steadily improving net assets and healthy working capital, indicative of good short-term financial health. The company, being young (incorporated late 2022), is in an early growth phase with no audit requirement, which means financial data is less complex but still reliable. The absence of debt beyond short-term liabilities and positive net current assets highlight a generally stable condition. However, the scale of operations is small with limited revenues and no employees, which constrains the breadth of financial resilience. The score "B" reflects a healthy status but with room for growth and diversification.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£15,087	Cash and receivables are sufficient for short-term obligations; a positive liquidity indicator.
Cash Balance	£9,920	Healthy cash reserves indicate good immediate liquidity ("healthy blood flow").
Debtors	£5,167	Moderate receivables; manageable but should be monitored for timely collection.
Current Liabilities	£2,604	Low short-term debt; company is not overburdened with immediate liabilities.
Net Current Assets	£12,483	Strong working capital ("good oxygen supply") to cover short-term debts and operational needs.
Net Assets / Shareholders’ Funds	£12,483	Indicates positive equity; company is building value for shareholders ("healthy heart muscle").
Profit & Loss Reserve	£12,482	Retained earnings reflect profitability or capital injections; positive accumulation.
Turnover	Not disclosed in detail	Lack of turnover data precludes analysis of revenue trends—focus on asset and equity growth.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity & Solvency: The company shows strong liquidity with cash almost 4 times its current liabilities. This means it can comfortably meet its short-term obligations, a key "vital sign" of financial wellness.
• Balance Sheet Strength: The increase in net assets from £4,440 (2023) to £12,483 (2024) is a positive "growth pulse," indicating retained profits or capital injections improving the company’s financial foundation.
• Operational Scale & Risk: The company currently has no employees and limited operational scale, which is typical for a new entity but poses risk if growth is not achieved. The reliance on a single director and 100% ownership concentration also poses governance concentration risk.
• Revenue & Profitability Visibility: Absence of detailed turnover or profit figures limits full diagnostic insight into operational performance. However, accumulating reserves suggest some profitable activity or capital contribution.
• Compliance & Governance: The company is compliant with filing deadlines and accounts preparation under the small companies regime, indicating stable administrative health.
• Industry Context: Operating in "Other social work activities without accommodation," a sector often reliant on stable funding and contracts, requires careful cash flow management.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Enhance Revenue Transparency:
   Consider disclosing turnover and profit figures in future reports to provide a clearer picture of operational performance, enabling better financial diagnosis and stakeholder confidence.

2. Strengthen Cash Flow Monitoring:
   Maintain and enhance the strong cash position with rigorous debtor management to prevent any "symptoms of distress" such as delayed payments that could impair liquidity.

3. Diversify Funding and Ownership:
   Explore opportunities for additional investors or partners to reduce concentration risk and provide capital for scaling operations, improving the company’s resilience and governance strength.

4. Plan for Growth & Staffing:
   If growth is anticipated, plan for hiring or outsourcing operational roles to support expansion, ensuring the company’s "muscle" (capacity) can sustain increased business demands.

5. Regular Financial Reviews:
   Schedule periodic financial health checks to monitor key ratios and early warning signs like rising liabilities or shrinking cash reserves, akin to routine health screenings.

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