EELA LTD

Executive Summary

EELA LTD is a newly established micro-entity showing positive but minimal net assets and working capital, indicating initial financial stability without operational scale. The company is in a healthy but fragile financial state, requiring strategic capital investment and revenue growth to strengthen its financial health and ensure sustainable operations.

EELA LTD - Analysis Report

Company Number: 14790621

Analysis Date: 2025-07-29 18:36 UTC

Financial Health Assessment Report for EELA LTD

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1. Financial Health Score: C

Explanation:
EELA LTD is a newly incorporated micro-entity with modest financial figures. The company shows a positive net current asset position, indicating initial financial stability, but the absolute values are low. Given its early stage and micro size, the score reflects a cautious outlook with room for growth and improvement in financial robustness.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£5,238	Cash and short-term resources available — a small buffer.
Current Liabilities	£3,841	Short-term debts due within one year — relatively low.
Net Current Assets	£1,397	Positive working capital — indicates ability to cover short-term liabilities.
Total Net Assets	£1,397	Indicates the company's net worth — positive but minimal.
Shareholders’ Funds	£1,397	Equity invested by shareholders — reflects initial capital.
Number of Employees	0	No employees hired yet — suggests early operational stage.

Interpretation:
The company’s "vital signs" show a positive but very modest financial position. The positive net current assets ("healthy cash flow") suggest the company can meet short-term obligations without distress. However, the low absolute figures indicate limited operational scale and financial cushion.

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3. Diagnosis

EELA LTD is in its infancy, having been incorporated in April 2023 and filing its first set of micro-entity accounts in April 2024. The financial "symptoms" reveal:

• Healthy short-term liquidity: The company has more current assets than liabilities, which is a positive sign of financial health.
• Low financial scale: The total net assets and shareholders’ funds are minimal (£1,397), showing the business is at a startup or pre-revenue phase with limited capital base.
• No operational staff: No employees indicate the company may be in a setup phase or relying on the director or contractors.
• No debt beyond short term: No long-term liabilities or provisions, indicating no financial burden from loans or deferred expenses.

Overall, the company presents the "symptoms of a very young and nascent business" with no significant financial distress but also limited operational and financial depth. The "healthy cash flow" is a positive sign but must be built upon to avoid future liquidity issues.

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4. Recommendations

To improve financial wellness and build resilience, EELA LTD should consider the following steps:

• Increase Capital Base: Consider additional investment or funding to build a stronger equity base and financial buffer.
• Develop Revenue Streams: Focus on operationalizing the business activities to generate turnover, improving cash inflows.
• Monitor Cash Flow Closely: Maintain healthy working capital by managing payables and receivables efficiently.
• Plan for Growth: Hire necessary staff or contractors to support business development and increase operational capacity.
• Regular Financial Reviews: Implement monthly or quarterly financial monitoring to detect any early signs of distress.
• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to maintain regulatory compliance and corporate reputation.

These actions will help transition the company from a fragile startup to a more financially stable and scalable entity.

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