E7 LIMITED

Executive Summary

E7 LIMITED maintains a stable and healthy financial position with strong liquidity and equity growth appropriate for a micro-entity. While current financial disclosures limit insight into profitability, the company exhibits no signs of financial distress, suggesting a positive outlook if current practices continue.

E7 LIMITED - Analysis Report

Company Number: 13104342

Analysis Date: 2025-07-20 13:03 UTC

Financial Health Assessment of E7 LIMITED as at 31 December 2024

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1. Financial Health Score: B (Good)

E7 LIMITED demonstrates a solid financial foundation with consistently positive net assets and net current assets over the past five years. The company maintains healthy working capital and shareholder funds relative to its micro-entity size. However, the lack of detailed profitability and cash flow data limits a full "A" grade, leaving room for improvement in operational transparency and growth indicators.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2024 Value (£)	Interpretation
Current Assets	82,316	Indicates sufficient short-term resources available to cover liabilities.
Current Liabilities	Not explicitly stated, but accruals: 6,000	Low short-term obligations; accruals increased but still manageable.
Net Current Assets	82,316	Positive working capital implies liquidity and smooth day-to-day operations.
Net Assets	76,316	Reflects cumulative retained value and equity in the business; stable and growing slightly.
Shareholders’ Funds	76,316	Equity financing is sufficient for a micro-entity; no signs of over-leverage.
Average Employees	1	Micro-scale operation with minimal staffing costs, indicating low overheads.
Share Capital	100	Minimal share capital, typical for a micro private limited company.

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3. Symptoms Analysis (What the Numbers Reveal)

• Healthy Cash Flow Proxy: Although cash flow data is not detailed, the consistently positive net current assets and net assets over five years act as a symptom of healthy liquidity and prudent financial management. The company appears to have maintained control over its short-term obligations with no signs of distress.

• Stable Equity Base: Shareholders' funds have increased modestly from £73,102 in 2023 to £76,316 in 2024, showing retained earnings or capital injections without volatility. This stability is a positive indicator of financial resilience.

• Low Leverage and Risk: With no indication of significant borrowings or liabilities beyond minor accruals, the company shows symptoms of low financial risk and solid solvency.

• Limited Growth or Investment: The static nature of the net assets and minimal share capital (£100) suggest the company is either in a stable maintenance phase or has limited expansion or investment activity. This could be a symptom of cautious management or low business scale.

• Micro-Entity Accounting: Filing under micro-entity provisions means less detailed financial disclosures, which limits insight into profitability or cash flow health. This "symptom" of limited disclosure should be monitored if the company plans to grow or seek external financing.

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4. Diagnosis (Overall Financial Condition)

E7 LIMITED is in a stable and healthy financial condition for a micro private limited company. It shows strong liquidity, positive net assets, and consistent equity growth over recent years. The company’s low operational scale (one employee) and minimal liabilities reduce financial stress, akin to a patient with no critical symptoms and stable vital signs.

However, the absence of detailed income statement and cash flow data is a blind spot, akin to missing blood work in a medical check-up. For a fuller diagnosis, monitoring profitability, cash flow trends, and any contingent liabilities would be prudent.

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5. Prognosis (Future Financial Outlook)

The prognosis for E7 LIMITED is positive if the company maintains its current financial discipline. The strong working capital and equity base provide a cushion against unforeseen expenses or downturns. As a micro-entity, the company is less exposed to complex financial risks.

However, should the company seek to expand or increase operational scale, it will need to monitor liquidity carefully and possibly enhance capital structure or reinvest retained earnings. Transparent reporting beyond micro-entity provisions would also benefit stakeholders and support growth.

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6. Recommendations (Actions to Improve Financial Wellness)

• Enhance Financial Reporting: Consider moving beyond micro-entity filing in future years to provide fuller financial statements, including profit and loss and cash flow, to improve transparency and aid decision-making.

• Monitor and Manage Accruals: Accruals increased from £2,428 to £6,000; ensure these liabilities are managed prudently to avoid cash flow strain.

• Plan for Growth: If growth is a goal, develop a financial strategy that includes potential capital investment, hiring plans, and cash flow forecasting.

• Maintain Working Capital: Continue to manage current assets and liabilities to preserve liquidity, ensuring the company’s "financial heartbeat" remains strong.

• Engage in Periodic Financial Health Reviews: Conduct regular assessments to catch early symptoms of financial distress, especially if business conditions or scale change.

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Executive Summary

E7 LIMITED shows a sound financial condition with strong liquidity and stable equity, typical of a well-managed micro private limited company. The company’s financial "vital signs" indicate healthy cash flow management and low financial risk, though limited reporting restricts insight into profitability. Overall, E7 LIMITED's financial prognosis is positive, with recommendations to enhance transparency and plan for future growth.