ENABLING MINDS LTD

Executive Summary

Enabling Minds Ltd, a newly incorporated micro-entity in the educational support services sector, demonstrates a sound financial foundation with positive liquidity and equity indicators. While profitability information is limited, the company’s balance sheet shows no distress symptoms, suggesting stable early-stage operations. Moving forward, focused cash flow management and profitability monitoring will be key to sustaining healthy growth.

ENABLING MINDS LTD - Analysis Report

Company Number: 15120598

Analysis Date: 2025-07-29 16:09 UTC

Financial Health Assessment of ENABLING MINDS LTD

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1. Financial Health Score: B

Explanation:
As a micro-entity in its first full financial period, Enabling Minds Ltd demonstrates a notably healthy financial position with positive net current assets, net assets, and shareholder funds, indicating a stable foundation. The absence of debt beyond short-term liabilities and a positive working capital ("healthy cash flow") suggest the company is managing its finances effectively. However, the small scale of operations, limited asset base, and lack of profitability data (due to micro-entity reporting exemptions) warrant cautious optimism rather than a top rating.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	406	Minimal long-term investment, typical for a startup or service-based business; no red flags here.
Current Assets	2,816	Cash and receivables sufficient to cover short-term obligations.
Current Liabilities	1,297	Short-term debts are low, suggesting manageable liabilities.
Net Current Assets (Working Capital)	1,519	Positive working capital indicates liquidity strength — company can meet short-term obligations comfortably.
Total Assets Less Current Liabilities	1,925	Indicates overall asset coverage of liabilities; healthy buffer.
Net Assets (Shareholders' Funds)	1,445	Positive net assets show company equity remains intact and solvent.
Staff Numbers	2	Small team consistent with micro-entity status; manageable overhead.
Account Filing Status	Up to date	No overdue filings, indicating good compliance and governance.

Interpretation:

• The company shows "vital signs" of a financially stable start-up: liquidity is intact, no signs of distress like negative working capital or eroded equity.
• The balance sheet signals a "healthy pulse" with a solid cash position relative to liabilities.
• Limited fixed assets and small size are normal for a company just over one year old.

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3. Diagnosis

Overall Financial Condition:
Enabling Minds Ltd is in a stable and solvent position with no immediate financial distress symptoms. The positive net current assets and shareholder funds indicate a well-capitalized micro-entity with prudent management of short-term liabilities and assets. The company’s balance sheet reflects a "healthy circulatory system," meaning cash and other current assets are sufficient to meet obligations, which is crucial for ongoing operations.

Caveats:

• Lack of Profit & Loss disclosure means profitability and cash flow trends are not visible; this limits a fuller diagnosis.
• Being newly incorporated (2023) with a single financial period reported, the company is still in an early developmental phase ("early growth stage").
• The small scale and limited asset base mean that expansion or unexpected costs could stress finances if not carefully managed.

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4. Recommendations

To ensure continued financial wellness and improve resilience, the following actions are advised:

1. Enhance Profitability Tracking:

   • Begin detailed internal monitoring of income and expenses to detect any "symptoms" of reduced profitability early.
   • Consider seeking professional advice on budgeting and financial forecasting.

2. Build Cash Reserves:

   • Aim to increase current assets, especially cash, to buffer against unforeseen expenses or seasonal fluctuations.
   • Healthy cash reserves are like a strong immune system for a business.

3. Monitor Working Capital:

   • Keep net current assets positive by managing receivables and payables effectively. Avoid overextension of credit terms to customers or suppliers.

4. Plan for Growth:

   • Since fixed assets are minimal, evaluate investments in technology or infrastructure that could enhance service delivery and efficiencies.
   • Consider strategies for scaling the workforce prudently to support growth without risking overhead strain.

5. Maintain Compliance:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.

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