EAGLE DOMINION CARE LTD

Executive Summary

Eagle Dominion Care Ltd, a newly incorporated private limited company, is currently in a fragile financial position characterized by negative working capital and equity, coupled with minimal cash reserves. Immediate steps to strengthen liquidity through capital injection and improved cash flow management are critical to avoid financial distress. With focused financial discipline and operational progress, the company can recover and build a healthier financial foundation.

EAGLE DOMINION CARE LTD - Analysis Report

Company Number: 15206707

Analysis Date: 2025-07-29 21:09 UTC

Financial Health Assessment for Eagle Dominion Care Ltd
Period Ending 31 October 2024

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1. Financial Health Score: D

Explanation:
This newly incorporated company shows significant early-stage financial distress indicated by negative net current assets and negative shareholders' funds. The negative equity reflects a "symptom of distress" akin to a patient with low vital signs requiring immediate attention. Given the absence of employees and minimal cash, the business is financially fragile but not yet insolvent. This score reflects the need for urgent remedial actions to restore financial health.

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2. Key Vital Signs

Metric	Value	Interpretation
Cash (Liquidity)	£100	Critically low; insufficient for operations or contingencies.
Current Liabilities	£1,140	Short-term debts exceed available cash by a large margin.
Net Current Assets	-£1,040	Negative working capital; inability to cover short-term obligations.
Shareholders' Funds (Equity)	-£1,140	Negative equity indicates accumulated losses or undercapitalization.
Employees	0	No staff employed; no wage expenses yet, but implies limited operational capacity.
Company Age	~1 year	Start-up stage; initial capital and financial structure still forming.

Interpretation:

• The company's "vital signs" show very weak liquidity and working capital.
• Negative net current assets and equity are "clear symptoms" of financial stress.
• The business currently cannot cover its short-term debts from available liquid assets.
• No employees suggest a lean or dormant operational state but may limit growth potential.
• Early stage with limited financial history; risk of cash flow problems is high.

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3. Diagnosis

Eagle Dominion Care Ltd is in the early phase of its business life cycle but already exhibits signs of financial strain. The negative net current assets and shareholders' funds indicate that the company has either started operations with insufficient capital or has accumulated losses in its first year. The extremely low cash balance signals a lack of liquidity buffer, which is critical for meeting immediate obligations—comparable to a patient with dangerously low blood pressure needing urgent stabilization.

The lack of employees may mean the company is not yet fully operational or is outsourcing services. The director is the sole significant controller, implying centralized decision-making but also concentration risk.

Overall, the company is in a vulnerable financial condition with a high risk of liquidity problems if it does not secure additional funding or improve cash flow soon.

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4. Recommendations

To improve financial wellness and stabilize the company's financial health, consider the following:

• Capital Injection: Seek additional equity investment or director loans to bolster cash reserves and improve net current assets, analogous to administering fluids to stabilize a patient’s vital signs.
• Cost Management: Minimize unnecessary expenses; review creditor terms to negotiate extended payment periods to ease immediate cash outflows.
• Revenue Generation: Accelerate efforts to generate operational income to improve cash flow and reduce reliance on external funding.
• Financial Planning: Implement detailed cash flow forecasting and working capital management to monitor liquidity "vital signs" regularly.
• Stakeholder Communication: Maintain transparent communication with creditors and investors about the financial position and recovery plans to sustain confidence.
• Operational Scaling: Carefully plan hiring and operational expansion in line with improving financial capacity to avoid overextension.
• Regular Review: Conduct frequent financial health checks, akin to follow-up medical assessments, to detect early signs of distress and intervene promptly.

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