L&G ACTON LTD

Executive Summary

L&G ACTON LTD is a newly established micro-entity in the public house sector with a fragile financial foundation, reflected by minimal net assets and tight working capital. While currently stable, the company is vulnerable to cash flow shocks and must focus on strengthening liquidity and controlling costs to build a sustainable business. Immediate action to improve financial buffers and revenue generation is essential for a healthier financial outlook.

L&G ACTON LTD - Analysis Report

Company Number: 14458610

Analysis Date: 2025-07-20 12:35 UTC

Financial Health Assessment Report for L&G ACTON LTD

---

1. Financial Health Score: D

Explanation:
L&G ACTON LTD is a very young micro-entity with extremely modest financial resources. The company's net assets stand at £97, which is barely above zero, indicating a fragile financial position. While the business is not in immediate distress, the minimal working capital and very limited asset base suggest the company is in a vulnerable state, particularly given it operates in the public houses and bars sector, which typically requires significant cash flow for operational stability. The "D" grade reflects this precarious financial standing with a need for urgent strengthening of capital and liquidity.

---

2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£5,502	Very low cash and short-term assets, limiting operational flexibility.
Current Liabilities	£5,405	Almost equal to current assets, creates a tight liquidity situation.
Net Current Assets	£97	Marginal positive working capital, indicates very tight short-term liquidity.
Net Assets	£97	Extremely low equity base, signals minimal financial cushion.
Average Number of Employees	7	Small workforce typical for a micro-entity, but implies fixed payroll costs.

Industry Context:
Operating as a public house/bar (SIC 56302) typically demands healthy cash flow to manage inventory, staff, rent, and variable customer demand. The current financial metrics show only a "pulse" of financial health, akin to a patient with minimal vital signs—stable but weak.

---

3. Diagnosis

The company's financial "symptoms" reveal a business at the very early stages of its life cycle. The minimal net assets and working capital suggest that L&G ACTON LTD has just begun operations and has not yet built a financial buffer or generated significant profits. The lack of fixed assets reported may imply reliance on rented premises or minimal capital investment thus far.

• The nearly balanced current assets and liabilities indicate very limited liquidity "reserves," meaning any unexpected expense or downturn could quickly lead to cash flow distress.
• The positive net current assets, although marginal, is a "healthy sign" that the company is not insolvent in the short term.
• The sole director and majority shareholder, Mr. Lewis Mark Acton, holds full control, which can facilitate quick decision-making but also concentrates risk.
• Employment of 7 staff members in a micro-entity suggests a relatively high fixed cost base relative to the company's financial resources.
• No audit requirement reflects the micro-category, but also limits external assurance on financial robustness.

Overall, L&G ACTON LTD is akin to a patient recently admitted for treatment: stable enough to remain active but requiring careful management and monitoring to avoid deterioration.

---

4. Recommendations

To improve the financial wellness and resilience of L&G ACTON LTD, the following actions are advised:

• Strengthen Working Capital: Seek additional capital injections or short-term financing to build a cash buffer. This will provide a cushion against operational risks and seasonal fluctuations common in hospitality.
• Cash Flow Management: Implement stringent cash flow monitoring and forecasting to anticipate and manage liquidity needs proactively.
• Cost Control: Review payroll and operating expenses to ensure alignment with revenue generation, especially important given the fixed cost base with 7 employees.
• Build Asset Base: Consider investing gradually in fixed assets or inventory to support growth and reduce dependency on third-party facilities.
• Revenue Growth: Explore marketing and customer engagement strategies to increase turnover and improve profitability, essential to convert the minimal equity into sustainable financial strength.
• Governance and Reporting: Maintain timely filings and consider future incorporation of more detailed financial reporting as the company grows, to attract investors or lenders.

---