EAT NOURISH AND GLOW LTD

Executive Summary

Eat Nourish And Glow Ltd maintains a stable financial position with positive net assets and working capital, but recent declines in cash reserves and equity point to tightening liquidity. The company is not in distress but should enhance cash management and focus on revenue growth to improve financial resilience and sustain healthy operations.

EAT NOURISH AND GLOW LTD - Analysis Report

Company Number: 13287754

Analysis Date: 2025-07-19 12:53 UTC

Financial Health Assessment for Eat Nourish And Glow Ltd (FY ending 31 March 2024)

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1. Financial Health Score: B

Explanation:
Eat Nourish And Glow Ltd shows a moderately healthy financial position with positive net assets and working capital, signaling operational viability. However, the decline in net assets and current assets over the year, along with increased depreciation charges, suggest early warning signs that require cautious monitoring. The company is not in distress but is facing some financial strain typical for a young private limited company in the health services sector.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Net Assets (Shareholders’ Funds)	5,388	9,908	Healthy positive equity but reduced by ~46%. Indicates some erosion in retained earnings or asset base.
Current Assets	7,606	17,935	Significant decline (~58%), primarily cash reduction. Reflects tighter liquidity.
Cash & Cash Equivalents	6,623	17,935	Large drop in cash reserves, a symptom of cash outflow or investment. Needs attention to avoid liquidity stress.
Current Liabilities	4,803	11,474	Reduced short-term debts, a positive sign of managing payables or other obligations better.
Net Current Assets (Working Capital)	2,803	6,461	Positive but significantly lower, indicating less buffer to cover short-term obligations.
Fixed Assets (Net Book Value)	2,585	3,447	Slight decrease after depreciation, normal wear and tear for assets like equipment.
Number of Employees	1	1	Small micro-business size, consistent staffing level.

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3. Diagnosis: What the Numbers Reveal

• Liquidity Status ("Healthy Cash Flow" vs. "Symptoms of Tightness"):
  The company maintains positive working capital and cash but the sharp decline in cash reserves from £17,935 to £6,623 is a symptom of tighter liquidity. This could be due to increased operating expenses, investments in the business, or reduced inflows. While not critical yet, this warrants careful cash flow management to avoid a crisis.

• Asset Management ("Aging Vital Organs"):
  The reduction in fixed assets due to depreciation indicates normal asset aging. No new major investments are noted, which might limit growth potential but also reduces capital expenditure pressure.

• Capital Structure ("Stable Heartbeat"):
  Share capital remains minimal at £1, typical for micro private companies. The net assets remain positive, signaling that the company is solvent and has more assets than liabilities.

• Operational Efficiency ("Symptoms of Contraction"):
  The decline in net assets and current assets may suggest the company is either investing in growth with short-term cash outflow or experiencing decreased profitability. Without a profit and loss statement, we infer some contraction or reinvestment phase.

• Compliance and Governance ("Clean Record"):
  The company is current on filings, not in liquidation or administration, and led by a single director with no adverse records. This indicates good governance and compliance health.

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4. Recommendations: Actions to Improve Financial Wellness

• Enhance Cash Management:
  Implement tighter cash flow forecasting and controls to prevent liquidity stress. Consider negotiating longer payment terms with suppliers or faster collections from clients.

• Revenue Growth Focus:
  Explore new client acquisition strategies or service expansions to increase turnover and rebuild cash reserves.

• Cost Control and Efficiency:
  Review operating expenses for potential reductions without compromising service quality. Monitor depreciation trends and plan asset replacements or upgrades to avoid sudden capital demands.

• Financial Reporting Enhancements:
  Prepare and review detailed profit and loss accounts regularly to identify profit erosion causes and take corrective actions early.

• Strategic Investment:
  Evaluate capital expenditures carefully; prioritize investments that directly contribute to revenue generation or operational efficiency.

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Medical Analogy Summary

Eat Nourish And Glow Ltd is akin to a patient with a "stable but weakening pulse." The company’s "vital signs" (net assets and working capital) remain positive, but the "symptoms" (declining cash and equity) indicate it is entering a phase of financial tightening. With proactive "treatment" — attentive cash flow management and strategic growth initiatives — the company can regain full financial "health" and avoid further distress.

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