E17 ELECTRONICS LIMITED

Executive Summary

E17 ELECTRONICS LIMITED operates as a micro entity with very low turnover and no net assets, reflecting a fragile financial condition but with a positive profit indicating operational viability. The company currently lacks liquidity and asset base, making it vulnerable to financial shocks despite no current liabilities. Immediate focus on building cash reserves, increasing revenue, and investing in assets is essential for improved financial health and sustainable growth.

E17 ELECTRONICS LIMITED - Analysis Report

Company Number: 14365274

Analysis Date: 2025-07-20 13:51 UTC

Financial Health Assessment for E17 ELECTRONICS LIMITED

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1. Financial Health Score: D

Explanation:
The company currently shows minimal financial activity, with very low turnover and zero net assets or working capital. While there is a modest profit reported for the year, the absence of any tangible assets or liquidity buffer suggests a fragile financial condition. This score reflects a company in early-stage operations or holding a very lean structure, with symptoms indicating limited financial resilience or growth capacity.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Turnover	9,353	Extremely low revenue, indicating small scale or startup phase.
Profit for the Period	5,233	Positive profit margin, which is a good symptom of operational viability.
Fixed Assets	0	No long-term investment in property or equipment; no asset base.
Current Assets	0	No cash or receivables; potential liquidity concerns.
Current Liabilities	0	No short-term debts, which is positive.
Net Current Assets	0	No working capital to cover daily operations if needed.
Net Assets / Shareholders’ Funds	0	No equity buffer; company value on books is nil.
Employees	0	No staff employed, possibly owner-operated or service-based.

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3. Diagnosis

Symptoms Analysis:

• The company is a micro entity engaged in electronics repair and wholesale, with a single director who is also the sole owner.
• The low turnover and small profit suggest early-stage business activity or limited market penetration.
• The absence of assets and working capital points to a business run on minimal resources, likely with owner’s personal input rather than significant financial investment.
• No employees are recorded, indicating either a sole trader model or outsourcing of operations.
• No liabilities reduce immediate financial risk but also reflect a lack of external financing or credit lines.
• The financial statements’ zero net asset position signals that the company is not building equity or accumulating resources.

Overall Condition:
The company resembles a patient with "low blood pressure" financially—operating at a minimal level without reserves or robust financial muscle. The positive profit is a "heartbeat" indicating potential viability, but the lack of tangible assets or working capital is a "symptom of frailty." The business is currently stable but vulnerable to shocks or unexpected expenses.

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4. Recommendations

1. Build Liquidity Reserves:
   Establish a healthy cash flow buffer by retaining some profits or injecting additional capital to improve working capital and absorb operational fluctuations.

2. Asset Investment:
   Consider acquiring essential fixed assets or inventory to support business growth and operational efficiency, which can improve the company’s balance sheet health.

3. Revenue Growth Strategy:
   Explore expanding sales channels or services to increase turnover beyond the current minimal level, turning the small profit into sustainable income.

4. Financial Monitoring:
   Implement regular financial reviews to monitor cash flow, costs, and profitability closely—acting as routine health checks to detect early signs of distress.

5. Employee or Outsourcing Review:
   Assess whether hiring staff or outsourcing certain functions could improve operational capacity and allow scaling while maintaining cost control.

6. Consider External Funding:
   If growth prospects are strong, explore small business loans or investor funding to strengthen the capital base and support expansion.

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