PLOVER ACCOUNTING SOLUTIONS LTD

Executive Summary

PLOVER ACCOUNTING SOLUTIONS LTD shows strong financial improvement with significant growth in liquidity and equity, signaling a healthy financial position for a micro-entity. The company maintains good working capital and compliance, with no signs of distress. Continued focus on cash flow management and client diversification will support sustainable growth.

PLOVER ACCOUNTING SOLUTIONS LTD - Analysis Report

Company Number: 13660354

Analysis Date: 2025-07-20 17:56 UTC

Financial Health Assessment of PLOVER ACCOUNTING SOLUTIONS LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates solid improvement in its financial position over the past year, particularly in liquidity and net assets. While the business remains small (micro-entity category) and has limited fixed assets, its working capital and shareholder equity growth indicate a generally healthy financial state. The score B reflects a stable condition with room for further strengthening and risk mitigation.

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2. Key Vital Signs

Metric	Latest (2024)	Previous (2023)	Interpretation
Fixed Assets	£124	£248	Minimal long-term investments; assets reduced slightly but immaterial at this scale.
Current Assets	£10,274	£2,170	Significant increase indicates improved cash or receivables; "healthy cash flow" symptom.
Current Liabilities	£2,846	£1,726	Liabilities have increased but remain well-covered by current assets.
Net Current Assets (Working Capital)	£7,428	£444	Major improvement; strong buffer to meet short-term obligations.
Net Assets (Equity)	£7,552	£691	Increased shareholder equity signals retained profits and financial strengthening.
Average Number of Employees	1	1	Very lean operation; low fixed overheads.

Interpretation of Vital Signs:

• The dramatic rise in current assets, especially cash or receivables, suggests enhanced liquidity and operational cash inflows.
• Current liabilities have grown but remain comfortably covered by current assets, indicating no immediate solvency concerns.
• Fixed assets are negligible, typical for a consultancy business with low capital expenditure needs.
• Equity growth shows retained earnings are accumulating, which bodes well for sustainability.

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3. Diagnosis

Overall Financial Condition:
PLOVER ACCOUNTING SOLUTIONS LTD exhibits the "symptoms of wellness" with strengthened liquidity and equity base over recent periods. The company's ability to increase net current assets from £444 in 2023 to £7,428 in 2024 is akin to a patient recovering from mild financial stress to a state of robust health. The steady equity growth corroborates profitability or capital injections.

However, the limited asset base and single employee operation mean the company is still relatively small and potentially vulnerable to market fluctuations or client dependency risks. The current liabilities level, while manageable, should be monitored to avoid any liquidity "distress signals."

No signs of financial distress, insolvency risk, or operational inefficiencies are apparent from the data. The company’s compliance with filing deadlines and active status further support a stable condition.

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4. Recommendations

• Maintain Healthy Cash Flow: Continue to monitor and manage receivables and payables to sustain liquidity. Keeping working capital positive is critical for ongoing operational health.
• Diversify Client Base: Given the small scale, diversifying clients can reduce dependency risk and buffer against revenue shocks—a preventive health measure.
• Consider Growth Investment: With increased equity and cash reserves, exploring modest investments in marketing or technology could enhance business growth, akin to strengthening immune defenses.
• Prepare for Scaling: As the company grows, consider formalising financial controls and perhaps expanding the team to avoid operational bottlenecks.
• Regular Financial Check-ups: Quarterly reviews of key financial metrics will help detect any emerging "symptoms" early, allowing timely corrective actions.

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