ELYSIAN SERVICES LTD

Executive Summary

Elysian Services Ltd has demonstrated a significant turnaround from previous financial distress, now showing strong liquidity and positive net assets. The company’s financial health is stable and improving, but it should focus on maintaining cash flow and building reserves to ensure sustained wellness. With prudent management, the outlook is positive for continued operational stability and growth potential.

ELYSIAN SERVICES LTD - Analysis Report

Company Number: 13556785

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

Financial Health Assessment: ELYSIAN SERVICES LTD (As at 31 August 2024)

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1. Financial Health Score: B

Explanation:
Elysian Services Ltd shows a marked recovery from prior years of financial distress, moving from negative net assets to a solid positive position within one year. The company exhibits a strong improvement in working capital and net assets, indicating a healthier balance sheet. However, as a micro-entity with modest fixed assets and limited scale, there remains some room for strengthening liquidity and expanding financial resilience.

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2. Key Vital Signs (Core Metrics & Interpretation)

Metric	2024 Value	Interpretation
Fixed Assets	£411	Very low, typical for a service business without heavy capital investment. Healthy given business nature.
Current Assets	£30,521	Substantial increase indicating healthy cash or receivables inflow. Good liquidity.
Current Liabilities	£13,938	Manageable short-term obligations. Coverage by current assets is strong (current ratio ≈ 2.19).
Net Current Assets	£16,583	Positive working capital signifies ability to meet short-term debts comfortably.
Net Assets (Shareholders’ Funds)	£16,994	Positive equity after previous losses; signals recapitalization or retained earnings growth.
Shareholder Control	75-100% (Kate Gathard)	Single dominant owner, ensuring streamlined decision-making but potentially limited external funding.

Interpretation:

• Healthy Cash Flow: The large increase in current assets suggests improved cash or receivables, a vital "heartbeat" for operational health.
• Symptoms of Prior Distress: The company was previously in a negative net asset position but has since reversed this, indicating corrective actions or capital injections have taken effect.
• Working Capital Strength: Positive and growing net current assets signal good short-term financial stability and operational liquidity.
• Low Fixed Assets: Consistent with a service-oriented human resources business which typically relies more on intangible assets and human capital.

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3. Diagnosis (Financial Condition Assessment)

Financial Vital Signs Indicate:
Elysian Services Ltd was experiencing "symptoms of distress" between 2022 and 2023, with negative net assets and working capital deficits. This situation posed risks to ongoing operations and creditor confidence. However, the 2024 accounts reveal a robust financial "recovery pulse":

• The company has transitioned from negative equity to positive net assets of £16,994, signaling a restoration of financial health.
• The current ratio improvement (>2) demonstrates a healthy liquidity position, capable of meeting short-term liabilities without strain.
• The primary shareholder’s full control reduces risk of shareholder disputes but may limit access to external equity.

Overall, the financial data suggests the company is in a stable and improving condition, showing resilience and effective management intervention to reverse prior financial weakness.

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4. Recommendations to Improve Financial Wellness

1. Maintain Healthy Cash Flow: Continue to monitor receivables closely to sustain liquidity. Avoid allowing current assets to become overly concentrated in slow-paying debtors.

2. Build Reserves Gradually: Given the company’s micro size, aim to grow retained earnings to buffer against future downturns and support any strategic investments.

3. Diversify Funding Sources: Explore opportunities to secure small-scale external funding (e.g., business loans or investor funds) to reduce dependence on the sole shareholder and enhance capital flexibility.

4. Cost Control and Profitability Focus: With only one employee (likely the director), keep overheads minimal but assess opportunities to increase revenue streams within the HR services niche.

5. Regular Financial Monitoring: Establish periodic financial reviews to catch early symptoms of distress, ensuring that working capital and profitability remain on track.

6. Prepare for Growth: Consider investing in digital tools or marketing to scale operations, which could improve fixed asset base and market presence over time.

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Medical Analogy Summary

The company was previously showing "financial fever" with negative net assets and working capital deficits, posing a risk akin to a patient with low blood pressure—unstable and in danger. Now, after treatment (likely cash injections or operational improvements), it has returned to "normal vital signs" with a strong working capital and positive equity, indicating a healthy and stable financial condition. Continued vigilance and prudent management will help maintain this healthy state and support growth.

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