EAZY SWITCH LIMITED

Executive Summary

EAZY SWITCH LIMITED shows a sound financial position with strong liquidity and growing shareholder equity, reflecting good financial health for a micro-entity in the telecommunications sector. The company has manageable liabilities and no signs of distress, though opportunities exist to leverage its improving balance sheet for strategic growth. Maintaining disciplined financial management and exploring operational enhancements will support ongoing financial wellness.

EAZY SWITCH LIMITED - Analysis Report

Company Number: 12483102

Analysis Date: 2025-07-20 16:17 UTC

Financial Health Assessment for EAZY SWITCH LIMITED

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1. Financial Health Score: B

Explanation:
EAZY SWITCH LIMITED demonstrates a generally stable financial position with improving shareholder equity and manageable current liabilities. The company’s micro-entity status means it operates on a small scale, with limited financial complexity. Vital signs reflect a company with a solid foundation but some room for improvement in working capital management and provisions.

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2. Key Vital Signs:

Metric	2024	Interpretation
Fixed Assets	£412	Small investment in long-term assets, typical for micro companies, indicating limited capital expenditure.
Current Assets	£11,535	Healthy level of current assets, mainly cash or equivalents, providing liquidity.
Current Liabilities	£4,534	Short-term debts are moderate and have decreased compared to the prior year.
Net Current Assets (Working Capital)	£7,001 (Current Assets - Current Liabilities)	Positive working capital indicates the company can cover short-term obligations comfortably.
Provisions for Liabilities	£831	Reduced significantly from prior year (£2,552), improving overall liabilities outlook.
Shareholders Funds (Equity)	£6,724	Strong upward trend in equity, showing retained earnings or capital injections enhancing net worth.
Average Employees	0	No staff employed, suggesting reliance on directors or outsourced operations.

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3. Diagnosis:

Vital Signs Analysis:
EAZY SWITCH LIMITED exhibits "healthy cash flow" indicators with current assets exceeding current liabilities by a significant margin, which is a positive symptom of liquidity strength. The reduction in provisions for liabilities points to decreasing contingent or pending obligations, which reduces financial strain.

Symptoms of Financial Health:

• The rising shareholders' funds from £3,074 (2023) to £6,724 (2024) is a strong sign of improved retained earnings or capital contributions, reflecting profitability or financial support.
• The company maintains minimal fixed assets, consistent with its micro size and likely service-based telecommunications activity.
• The absence of employees may indicate a lean operating model, possibly leveraging contractors or technology rather than headcount.
• Current liabilities have reduced, easing short-term cash flow pressures.

Underlying Business Health:
While the company is small and relatively young (incorporated in 2020), its balance sheet shows a positive trajectory with growing equity and controlled liabilities. The micro-entity exemption and lack of audit suggest simplicity in its financials, but also less external financial scrutiny. The company appears solvent and liquid, with no overdue filings or signs of distress.

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4. Recommendations:

• Maintain Positive Working Capital: Continue to monitor cash flow closely to sustain the current buffer between assets and liabilities. Managing receivables and payables efficiently will prevent liquidity stress.
• Review Provisions Regularly: The significant drop in provisions is encouraging but ensure any potential liabilities are adequately covered to avoid unexpected financial shocks.
• Consider Growth Investments: With growing equity, evaluate opportunities to invest in fixed assets or technology infrastructure to support business expansion or operational efficiency.
• Enhance Operational Capacity: Given zero employees, consider if hiring or contracting staff could improve service delivery or growth potential, balanced against cost considerations.
• Financial Reporting: Maintain timely and accurate filings, and consider voluntary audit or review if seeking external financing or stakeholder confidence.
• Strategic Planning: Develop a business plan addressing market positioning in telecommunications, focusing on competitive advantages and risk mitigation.

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