ECHO PROPERTIES LETTINGS AND SALES LIMITED

Executive Summary

Echo Properties Lettings and Sales Limited is in its initial operational stage, exhibiting financial metrics typical of a start-up with minimal assets and tight liquidity. While currently maintaining a positive working capital, the company’s financial health is fragile and requires careful cash flow management and growth planning. Strategic focus on building reserves and profitability will be essential to improve its financial resilience and ensure long-term sustainability.

ECHO PROPERTIES LETTINGS AND SALES LIMITED - Analysis Report

Company Number: 15004666

Analysis Date: 2025-07-29 13:56 UTC

Financial Health Assessment of Echo Properties Lettings and Sales Limited

---

1. Financial Health Score: D

Explanation:
As a newly incorporated micro-entity with limited financial history and minimal net assets (£713), the company's financial health is currently fragile. While there are no signs of immediate distress, its very small asset base and low working capital indicate a nascent or early-stage business with limited financial cushion. The score reflects a cautious outlook given the minimal financial data and limited operational scale.

---

2. Key Vital Signs

Metric	Value	Interpretation
Company Age	Less than 1 year	Start-up phase—limited financial history, typical for new ventures
Net Current Assets	£713	Positive but very low working capital; indicates current assets just slightly exceed liabilities
Current Assets	£10,000	Cash or equivalents primarily; shows some liquidity
Current Liabilities	£9,287	Short-term obligations nearly equal to liquid assets; potential liquidity pressure if inflows slow
Net Assets	£713	Very low equity base; minimal buffer against losses
Shareholders’ Funds	£713	Equity entirely from initial capital; no retained earnings yet
Employees	1	Micro entity with minimal staffing; low operational scale
Audit Status	Exempt	Micro-entity regime; accounts unaudited but compliant with small company rules

---

3. Diagnosis: What the Numbers Reveal About Business Health

Echo Properties Lettings and Sales Limited is currently in the early "infancy" stage of its financial lifecycle. The company’s financial "vital signs" show a fragile balance between its current assets and liabilities, akin to a patient with a mild dehydration risk—liquid assets are just enough to cover short-term debts but offer little room for unexpected expenses or downturns.

The low net assets and working capital suggest limited operational scale and minimal profitability so far, which is typical for a start-up. The absence of retained earnings or profit and loss data points to either no trading activity or break-even results to date.

The director’s compliance with micro-entity accounting provisions reduces administrative burden but also limits the financial transparency and detail available, which may mask early warning signs if the business encounters challenges.

The single director and sole shareholder structure provide clear control but also concentrate financial risk in one individual.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

• Build Cash Reserves: Aim to increase current assets, especially cash balances, to create a healthy cash flow buffer capable of absorbing short-term liabilities and operational expenses without strain.

• Monitor Working Capital Closely: Maintain a positive and growing net current asset position to ensure liquidity health, avoiding symptoms of cash flow distress.

• Develop Profitability Plans: Focus on generating revenues and managing costs to move from a break-even or loss-making position toward profitability, which will strengthen net assets and shareholder equity.

• Maintain Accurate and Timely Filings: Continue compliance with Companies House filing requirements to avoid penalties and maintain stakeholder confidence.

• Consider Growth Strategy: Evaluate client acquisition and market positioning to expand business scale beyond micro entity thresholds, which may improve financial robustness.

• Seek External Advice if Needed: Engage financial or business advisors to create a sustainable financial model and risk management framework as the company evolves.

---