ENLIN LIMITED

Executive Summary

ENLIN LIMITED exhibits solid financial health with positive liquidity, solvency, and initial profitability typical of a new business in the takeaway food sector. The company’s financial condition is stable, showing healthy cash flow and a good equity base, but it remains early in its lifecycle. Focused management of working capital and profitability will be key to sustaining growth and financial resilience.

ENLIN LIMITED - Analysis Report

Company Number: SC785970

Analysis Date: 2025-07-29 14:46 UTC

Financial Health Assessment Report for ENLIN LIMITED
Assessment Date: March 2025
Period Covered: 13 Oct 2023 – 31 Oct 2024 (first financial period)

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1. Financial Health Score: B

Explanation:
ENLIN LIMITED shows a solid start for a newly incorporated company. The company has positive net current assets and shareholders’ funds, indicating a stable financial footing with no immediate liquidity or solvency issues. However, as a first-year business with modest asset size and limited operational history, it has not yet demonstrated robust profitability or growth capacity. This score reflects a "mostly healthy" financial condition with room for strengthening operational performance and building resilience.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	8,603	Sufficient short-term resources to cover liabilities.
Cash at Bank	7,764	Healthy cash reserve — key for daily operations.
Current Liabilities	2,864	Manageable short-term obligations.
Net Current Assets	5,739	Positive working capital — good liquidity buffer.
Shareholders’ Funds	5,739	Positive equity base supports solvency.
Number of Employees	3	Small team size consistent with micro/small enterprise.

Additional Observations:

• Stock held is £839, which is reasonable for a takeaway food business, showing inventory management.
• Profit and loss reserves of £5,639 indicate the company earned a modest profit in its first year.
• No debt or bank loans reported, reducing financial risk.
• Directors are also significant owners, which aligns interests but also concentrates control.

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3. Diagnosis

ENLIN LIMITED’s financial "vital signs" suggest a nascent but stable financial condition typical of a start-up in the food takeaway sector. The company demonstrates "healthy cash flow" fundamentals with cash exceeding current liabilities by a significant margin, which is a positive "symptom" indicating the business can comfortably meet its short-term obligations. Positive shareholders’ funds further indicate that the company is solvent and not reliant on external creditors.

The small size of the company, limited fixed assets, and modest turnover (implied by total assets and equity levels) mean ENLIN is in an early stage of its business lifecycle. This first-year profit reserve shows early operational success but needs to be watched for sustainability as the company grows.

No signs of financial distress such as negative working capital, excessive liabilities, or inadequate cash reserves are present. The company’s accounting policies and disclosures align with the small companies regime, which is appropriate for its size.

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4. Recommendations

To maintain and improve financial wellness, ENLIN LIMITED should consider the following actions:

1. Build Cash Reserves: Continue to maintain or increase cash holdings to provide a stronger cushion against any operational volatility or unexpected expenses.

2. Monitor Working Capital: Keep a close eye on stock levels to avoid overstocking which can tie up cash unnecessarily, especially important in the perishable food sector.

3. Profitability Tracking: Develop detailed profit and loss tracking to identify cost drivers and enhance margin management as the company scales.

4. Growth Planning: Prepare financial forecasts and budgets to guide strategic decisions on expansion, marketing and staff hiring, ensuring growth is supported by sufficient capital.

5. Governance: Given ownership concentration, consider formalizing governance structures to manage risks and ensure robust oversight.

6. Compliance: Maintain timely filings with Companies House to avoid penalties and ensure ongoing regulatory compliance.

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