Company Number: SC717293

Analysis Date: 2025-07-20 17:16 UTC

Comprehensive Financial Health Assessment for ENVERTIZ GROUP LTD

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1. Financial Health Score: D

Explanation:
ENVERTIZ GROUP LTD shows significant signs of financial distress. While it maintains an active status and timely filings, its core financial metrics reveal liquidity challenges and a fragile net asset position. The scarce net assets and negative working capital suggest the company is struggling to cover short-term obligations with its current resources, meriting a below-average grade.

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2. Key Vital Signs

Vital Sign	2023 Value (£)	Interpretation
Fixed Assets	150,000	Stable investment in long-term assets, slightly increased from 135,000 in 2022.
Current Assets	98,652	Substantial increase from 4,871 in 2022, indicating improved short-term resource availability.
Current Liabilities	248,523	Significant jump from 5,000 in 2022; liabilities due within one year far outweigh current assets.
Net Current Assets	-149,871	Negative working capital, a symptom of liquidity stress; company may face difficulty meeting short-term debts.
Creditors (Long Term)	0	No long-term liabilities in 2023, improved from 135,000 in 2022.
Net Assets	129	Barely positive net assets, indicating very weak equity cushion and vulnerability to losses.
Shareholders’ Funds	129	Same as net assets, reflecting minimal capital invested by owners.

Additional Notes:

• The company has no employees, implying minimal operational overhead or possibly outsourced services.
• The company is classified as a Micro entity, so filings are simplified.
• Directors are compliant with filing deadlines, which is a positive governance indicator.

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3. Diagnosis: Financial Health Analysis

ENVERTIZ GROUP LTD exhibits symptoms of financial distress, primarily highlighted by its liquidity position:

• Negative Working Capital: The company’s current liabilities (£248,523) exceed its current assets (£98,652) by a large margin (-£149,871). This means the company does not have enough liquid assets to pay off its short-term debts when due, akin to a patient showing signs of dehydration — the company lacks the "fluid" (cash or equivalents) to function smoothly.

• Net Assets Barely Positive: Net assets stand at only £129, indicating an extremely thin equity base. This fragile net worth leaves the company highly vulnerable to any unexpected losses or financial shocks, similar to a patient with a critically low immune system margin.

• Fixed Assets Stability: The fixed asset base has grown modestly, suggesting some investment or capital expenditure, which could be a positive sign if these assets generate future returns. However, without sufficient working capital, these assets may be underutilized or difficult to leverage.

• Improved Current Assets: A strong increase in current assets from 2022 to 2023 signals some operational improvement or better asset management. However, the concurrent surge in current liabilities overshadows this positive change.

• Debt Reduction: The elimination of long-term creditors in 2023 from £135,000 in 2022 indicates some debt restructuring or repayment, which can be a positive step towards financial health, but the spike in short-term liabilities raises concerns about refinancing or rollover risks.

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4. Recommendations: Steps to Improve Financial Wellness

1. Improve Liquidity Position:

   • Prioritize enhancing cash flow through accelerated receivables collection or liquidating non-essential current assets.
   • Negotiate extended payment terms with creditors to reduce immediate pressure on cash reserves.

2. Restructure Short-Term Debt:

   • Explore options to refinance current liabilities into longer-term debt to ease short-term cash flow strain.
   • Engage with lenders to discuss potential debt rescheduling or covenant waivers.

3. Strengthen Equity Base:

   • Consider capital injection from shareholders or new investors to build a stronger financial cushion.
   • Retain earnings where possible to rebuild reserves.

4. Operational Review:

   • Since the company currently has no employees, review operational efficiency and cost structure to ensure sustainable business activity.
   • Explore opportunities to generate steady revenue streams that can improve working capital.

5. Financial Monitoring:

   • Implement regular cash flow forecasting and financial health diagnostics to detect and address symptoms early.
   • Maintain compliance with filing requirements to avoid penalties and maintain stakeholder confidence.

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