THE ACE EXPERIENCE LTD

Executive Summary

THE ACE EXPERIENCE LTD is financially solvent with positive working capital but shows signs of contraction in assets and equity in the latest year. The company maintains good administrative compliance and liquidity but should investigate the causes of reduced financial reserves and strengthen cash flow management to safeguard future stability.

THE ACE EXPERIENCE LTD - Analysis Report

Company Number: 13102241

Analysis Date: 2025-07-20 13:01 UTC

Financial Health Assessment of THE ACE EXPERIENCE LTD

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1. Financial Health Score: B

Explanation:
THE ACE EXPERIENCE LTD shows a solid financial position with positive net assets, consistent working capital, and no overdue filings—a sign of good compliance and operational control. However, the significant reduction in current assets and net assets in the latest year compared to prior years signals caution. This suggests some symptoms of financial contraction or reduced liquidity that require monitoring but do not yet indicate critical distress.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Fixed Assets	1,595	2,392	Stable, low fixed asset base typical for a micro business; no major capital investment signaled.
Current Assets	24,415	75,662	Significant drop (~68%) indicating reduced cash or receivables; potential liquidity tightening.
Current Liabilities	2,402	27,155	Sharp decrease in short-term debts, suggests improved payables or creditor management.
Net Current Assets	22,013	48,507	Healthy positive working capital but reduced by over 50%, signaling less immediate liquid buffer.
Total Assets Less CL	23,608	50,899	Reflects overall asset base after short-term liabilities, showing contraction.
Net Assets / Shareholders’ Funds	23,608	50,899	Equity has halved, indicating reduced retained earnings or losses accumulated during the year.
Share Capital	1.00	1.00	Minimal share capital consistent with micro company status.
Employees	1	1	Stable headcount, low overheads but also limited capacity for scaling.

Interpretation of Vital Signs:
THE ACE EXPERIENCE LTD maintains a "healthy cash flow" appearance with positive net current assets and net assets. However, the sharp reduction in current assets (including cash and debtors) and net assets signals "symptoms of distress" akin to a patient showing signs of fatigue or depletion of reserves. The decreased current liabilities suggest the company has reduced short-term debts, which is positive, but the overall contraction in financial size warrants investigation.

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3. Diagnosis

• Liquidity: The company retains a comfortable short-term liquidity position with current assets significantly exceeding current liabilities. This is akin to a patient having enough immediate energy reserves to meet daily demands.
• Solvency: Positive net assets indicate solvency is intact; the company has more assets than liabilities.
• Financial Stability: The halving of net assets year-over-year may indicate reduced profitability or increased expenses, possibly from investments, write-downs, or lower revenue generation.
• Operational Efficiency: Consistent employee numbers and low fixed assets suggest a lean operation, typical for a micro business in service industries such as advertising and business support.
• Compliance: All filings are up to date with no overdue returns or accounts, indicating good "administrative health."

Overall, the company is financially solvent and liquid but showing early "symptoms" of financial contraction that merit attention to prevent more serious "illness" such as cash flow stress or solvency issues.

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4. Recommendations

1. Investigate Causes of Asset Reduction:
   Review revenue, expenses, and cash flow for 2023 to identify causes behind the sharp drop in current assets and net assets—potentially reduced sales, increased costs, or write-offs.

2. Strengthen Cash Flow Management:
   Maintain or improve liquidity by monitoring debtor collections and creditor payments rigorously. Consider negotiating better payment terms or accelerating receivables.

3. Cost Control:
   Assess fixed and variable costs to ensure expenses align with income, especially in light of reduced asset base.

4. Strategic Growth Planning:
   Explore opportunities to increase sales or diversify income streams to rebuild the asset base and profits, akin to prescribing a "nutritional plan" to restore strength.

5. Regular Financial Monitoring:
   Implement monthly or quarterly financial reviews to detect early warning signs ("symptoms") of financial stress before they escalate.

6. Maintain Compliance:
   Continue timely filing of accounts and returns to avoid penalties and maintain corporate reputation.

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