ENDURING IT SERVICES LTD

Executive Summary

ENDURING IT SERVICES LTD currently operates with very limited financial resources, exhibiting a fragile liquidity position and a declining equity base typical of a micro-entity in its early stages. While compliant and active, the company should prioritize strengthening cash flow and capital reserves to ensure long-term financial health and operational stability.

ENDURING IT SERVICES LTD - Analysis Report

Company Number: 14225446

Analysis Date: 2025-07-20 11:15 UTC

Financial Health Assessment Report for ENDURING IT SERVICES LTD

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1. Financial Health Score: D

Explanation:
The company exhibits extremely limited financial resources with very low current assets and net assets, and a declining trend in working capital. While it is not in immediate distress, the financial position is fragile, indicating weak liquidity and capital base. This score suggests caution and the need for active financial management to avoid future distress.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Current Assets	1,717	2,508	Very low cash and equivalents; declined from prior year, signaling reduced liquidity.
Current Liabilities	(not explicitly stated in 2024, but net current assets = current assets - current liabilities)	22,298	High short-term obligations relative to assets (2023), no new data for 2024 but net current assets dropped, indicating liabilities remain a concern.
Net Current Assets	1,717	2,508	Positive but very small buffer to cover short-term debts; decreased from prior year.
Net Assets (Equity)	1,717	2,508	Very low equity base; declining trend suggests erosion of capital.
Shareholders Funds	1,717	2,508	Mirrors net assets; small capital invested or retained earnings.
Employees (Average)	1	1	Very small operation, possibly a sole trader or micro-entity.

Interpretation:

• The company has a "micro" scale financial profile with minimal assets and working capital.
• The significant drop in current assets from £2,508 to £1,717 over one year, with a corresponding drop in net assets, shows a weakening financial cushion to meet liabilities.
• Absence of detailed liabilities data for 2024 means we must infer from net current assets; the company remains barely solvent in the short term.
• The lack of fixed assets or larger capital investments suggests the company may rely heavily on cash or receivables to operate.

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3. Diagnosis

Symptoms Analysis:

• The company shows symptoms of a "fragile financial pulse" — the working capital buffer (net current assets) is positive but very small and shrinking.
• The decline in net assets reflects either operating losses or capital withdrawals.
• With only one employee and micro-entity status, the company is likely in an early startup or very lean operating phase, which can explain limited financial resources.
• Absence of audit requirements and minimal filing complexity align with the micro-entity profile, but also mean less detailed financial scrutiny.
• No overdue filings and active company status are positive signs indicating compliance and ongoing operations.

Underlying Issues:

• Very low liquidity and equity base limit the company’s ability to absorb shocks or invest for growth.
• Potential cash flow constraints could hamper operational flexibility.
• The company must be cautious about managing payables and receivables to avoid insolvency risks.

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4. Recommendations

1. Strengthen Cash Reserves:
   Seek to improve liquidity through better cash flow management, timely invoicing, and controlling expenses. Consider short-term financing options if needed.

2. Increase Capital Base:
   Explore options for fresh equity injection or retained earnings growth to build a stronger equity base and improve solvency.

3. Monitor Working Capital Closely:
   Regularly review current assets and liabilities to ensure the company maintains a positive net current asset position to avoid distress symptoms.

4. Operational Efficiency:
   Maintain lean operations but explore incremental revenue opportunities to improve profitability and financial health.

5. Financial Planning and Forecasting:
   Implement simple budgeting and forecasting to anticipate cash flow needs and avoid surprises.

6. Professional Advice:
   Engage with a financial advisor or accountant for tailored strategies to improve financial resilience as the company grows.

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