Company Number: 13887273

Analysis Date: 2025-07-20 16:49 UTC

Financial Health Assessment Report for CAMELIA CARE EPSOM LTD
As of Financial Year Ending 28 February 2024

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1. Financial Health Score: B

Explanation:
CAMELIA CARE EPSOM LTD demonstrates a solid improvement in its financial position over its short operating history since incorporation in 2022. Key metrics show a strengthening balance sheet and working capital, indicating a generally healthy financial condition. However, some caution is warranted due to its relatively early stage of operations, modest scale, and reliance on director loans with some creditor concentration. The score "B" reflects good financial health with room for improvement in liquidity management and cash flow stability.

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2. Key Vital Signs (Core Financial Metrics & Interpretation)

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	101,872	65,131	Increased current assets signify improved short-term resources to meet obligations.
Cash at Bank & In Hand	51,872	65,131	Cash reserves have declined, which could signal tighter liquidity or investment in assets.
Debtors	50,000	0	Introduction of debtors suggests credit sales or accrued income, an asset but potential risk.
Current Liabilities	32,449	58,532	Reduction in short-term liabilities improves liquidity and reduces immediate financial stress.
Net Current Assets	69,423	6,599	Strong growth in working capital ("healthy blood flow") supports operational stability.
Fixed Assets (Tangible)	45,422	19,023	Significant investment in motor vehicles points to growth but increases asset risk exposure.
Net Assets (Equity)	114,845	25,622	Substantial increase in net assets ("strong bones") reflects retained earnings and capital.
Shareholders’ Funds	114,845	25,622	Equity growth shows stronger financial foundation and owner commitment.
Director Loans (Creditor)	(6,915)	50,041	Director loans reduced from creditor balance, easing reliance on related party funding.
Average Employees	5	5	Stable staffing level; manageable scale consistent with a small enterprise.

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3. Diagnosis: Financial Condition & Underlying Business Health

• Liquidity & Working Capital:
  The company has transitioned from marginal working capital to a strong net current asset position (+£69k), a key sign of healthy cash flow management. Despite a reduction in cash reserves (£51.9k from £65.1k), the overall increase in debtors and current assets suggests operational growth and credit extension to customers. The decline in current liabilities from £58.5k to £32.4k alleviates short-term pressure.

• Asset Base & Investment:
  Tangible fixed assets nearly doubled, mainly motor vehicles, indicating capital investment to support business activities. While this improves capacity, it also ties up cash and introduces depreciation expense, requiring careful asset utilization monitoring.

• Capital Structure & Solvency:
  Net assets increased more than fourfold, signaling retained earnings accumulation and an improving equity buffer. The reduction in director loans as a creditor liability reflects improved external funding or cash flow management, reducing financial risk.

• Business Model & Industry:
  Operating in "Other residential care activities not elsewhere classified" (SIC 87900), the company is in a service sector requiring stable cash flows and regulatory compliance. The stable employee count suggests controlled growth.

• Risks & Concerns:

  • Cash reduction despite rising assets signals potential liquidity risk if debtor collections lag.
  • Concentration of control among directors (significant shareholders and influence) could pose governance risks but also demonstrates committed leadership.
  • Absence of audited accounts means financial figures are unaudited; potential for unrecognized risks.
  • No profit and loss figures provided; profitability assessment is limited.

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4. Recommendations for Financial Wellness Improvement

1. Cash Flow Management:

• Monitor debtor collection closely to convert accrued income into cash quickly, ensuring liquidity remains "healthy" and operational expenses are met comfortably.
• Consider implementing stricter credit control policies to reduce debtor days.

2. Asset Utilization:

• Evaluate motor vehicle usage and maintenance costs to ensure asset investments generate returns and do not become a financial drain.

3. Capital & Funding Strategy:

• Explore opportunities for external funding or grants to reduce director loan reliance and diversify capital base, improving financial resilience.

4. Profitability & Cost Control:

• Prepare and review profit and loss statements regularly to identify cost-saving opportunities and revenue enhancement, ensuring sustainable profitability.

5. Governance & Compliance:

• Maintain timely statutory filings and consider an audit or review engagement to enhance financial transparency and stakeholder confidence.

6. Strategic Planning:

• Develop a financial forecast aligned with business plans to anticipate capital requirements and cash flow needs, reducing surprises and financial stress.

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