EASY PLANS DB LIMITED

Executive Summary

EASY PLANS DB LIMITED is financially stable for its first year with positive working capital and equity but lacks profitability data. The company’s liquidity position is healthy, and it meets compliance requirements well. Focused efforts on revenue growth and cash flow management will be key to sustaining and enhancing financial wellness as the business develops.

EASY PLANS DB LIMITED - Analysis Report

Company Number: 15156595

Analysis Date: 2025-07-20 13:30 UTC

Financial Health Assessment of EASY PLANS DB LIMITED
As of Financial Year Ending 30 September 2024

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1. Financial Health Score: B

Explanation:
For a newly incorporated small private limited company, EASY PLANS DB LIMITED shows a solid start with positive net current assets and positive shareholders' funds. The company maintains a healthy liquidity position relative to its current liabilities, indicating good short-term financial stability. However, the company's small scale, limited operational history, and minimal financial data restrict a higher grade. As a start-up, it appears financially stable but requires growth and profitability monitoring going forward.

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2. Key Vital Signs

Metric	Value	Interpretation
Cash at Bank	£5,431	Modest cash reserve indicating liquidity buffer. Healthy for start-up size.
Current Liabilities	£2,284	Low short-term obligations, manageable relative to cash.
Net Current Assets	£3,147	Positive working capital — a sign of healthy operational liquidity.
Shareholders’ Funds	£3,147	Equity capital positive, representing owner investment and retained earnings.
Number of Employees	1	Micro-business scale; low overheads but limited operational capacity.
Company Age	~1 year	Early stage; financial history limited, results preliminary.
Audit Status	Exempt	Small company exemption; no external audit performed yet.

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3. Diagnosis: Financial “Health” and Symptoms

• Liquidity (“Pulse”): The company has a positive net current asset position (£3,147), which indicates “healthy cash flow” relative to immediate obligations. Cash on hand (£5,431) is sufficient to cover current liabilities (£2,284), implying no immediate liquidity distress.

• Capital Structure (“Bone Strength”): Shareholders’ funds equal net current assets, reflecting that the company is fully equity-financed at this stage with no long-term debt. This is typical and prudent for a start-up, implying no “symptoms of over-leverage.”

• Operational Scale (“Muscle Mass”): The company employs only one person (likely the director), which is typical for a micro-business in the construction/building completion sector. Limited scale restricts revenue generation capacity and diversification.

• Profitability and Revenue (“Heart Beat”): No profit and loss account was included, and turnover figures are not disclosed. This is a critical “symptom” missing to fully assess operational performance, but absence suggests early development phase without meaningful trading profit yet.

• Compliance (“Nervous System”): The company is compliant with filing deadlines, no overdue accounts or returns, indicating good governance and regulatory health.

• Risk Factors (“Symptoms of Vulnerability”): Early stage companies face risks of cash flow volatility and market entry challenges. The single director/owner concentration means decision-making is centralized but could be a single point of failure.

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4. Prognosis: Future Financial Outlook

Given the early stage and positive liquidity, the company has a fair prognosis if it manages to grow turnover and control costs effectively. The absence of debt is a strong positive, providing flexibility. However, the lack of profitability data means the company should carefully monitor cash flows and operational progress to avoid distress symptoms like cash shortages or inability to meet liabilities.

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5. Recommendations: Treatment Plan for Financial Wellness

• Develop Detailed Budget and Cash Flow Forecasts: To anticipate liquidity needs and ensure continued “healthy circulation” of funds.

• Focus on Revenue Generation: Early emphasis on winning contracts and building a stable client base to translate into profitability.

• Maintain Tight Cost Controls: Keep overheads low in line with current operational scale to avoid “overexertion” financially.

• Consider Building Reserves: As business grows, accumulate retained earnings to buffer against unforeseen expenses or downturns.

• Plan for External Audit or Review: As turnover grows beyond small company thresholds, prepare for audit requirements to enhance credibility with stakeholders.

• Diversify Leadership and Skills: If possible, onboard additional management or advisory support to strengthen decision-making and operational resilience.

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Summary

EASY PLANS DB LIMITED is a micro-scale, newly formed private limited company in the building completion industry with a stable financial “heartbeat” demonstrated by positive liquidity and equity funding. While early days limit assessment of profitability and growth potential, the company shows no current signs of financial distress. Careful management of cash flow and strategic growth initiatives will be critical to maintaining and improving financial health.