Company Number: 13537640

Analysis Date: 2025-07-20 13:58 UTC

Financial Health Assessment: ENVIRA FLOOR LIMITED

---

1. Financial Health Score: B

Explanation:
Envira Floor Limited shows solid signs of improving financial health with a consistent increase in net assets and net current assets over the last three years. The company maintains positive working capital and equity, indicating the business is fundamentally stable and solvent. The score “B” reflects a generally healthy financial position but with room to strengthen liquidity and reduce reliance on short-term creditors.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	17,004	0	Introduction of fixed assets signals investment in long-term resources, a positive sign.
Current Assets	324,459	222,105	Healthy increase in short-term assets (cash, stock, receivables) supports operational needs.
Current Liabilities	237,135	187,812	Increase in short-term debts; must be monitored to avoid liquidity strain.
Net Current Assets (Working Capital)	87,324	34,293	Strong positive working capital indicates the company can meet short-term obligations comfortably.
Creditors Due After One Year	18,284	0	Introduction of longer-term liabilities; manageable if cash flows remain stable.
Net Assets (Equity)	86,010	34,280	Growth in equity reflects accumulation of retained earnings, a sign of growing financial strength.
Average Number of Employees	2	2	Small headcount consistent with micro-entity status, lean operation.

---

3. Diagnosis

Envira Floor Limited presents the financial "vital signs" of a growing micro-entity with improving asset base and shareholder equity. The company’s net current assets have grown significantly, suggesting a "healthy cash flow" environment that supports daily operations and supplier payments without evident liquidity distress.

The increase in fixed assets indicates investment in operational capacity or equipment, which may enhance future revenue generation. However, the rise in current liabilities and the introduction of longer-term creditors suggest the company is partly financing growth through debt. While this is common in early-stage companies, it requires careful monitoring to avoid symptoms of financial strain.

Overall, the business shows no signs of distress such as negative working capital or eroding equity. The directors have maintained compliance with filing deadlines, and there are no red flags regarding company status or director conduct.

---

4. Recommendations

• Strengthen Liquidity: Although working capital is positive, the increase in current liabilities means the company should maintain vigilant cash flow management. Consider negotiating longer payment terms with suppliers or accelerating receivables collection to boost liquidity buffer.

• Debt Management: Monitor the new long-term creditors closely to ensure debt servicing does not compromise operational cash flow. Explore refinancing options if interest costs become burdensome.

• Asset Utilization: With fixed assets now on the balance sheet, ensure these assets are fully utilized to generate revenue and support profitability.

• Growth Planning: Given the positive equity trend, the company might consider reinvesting profits into marketing or expanding product lines within the floor and wall covering market to build competitive advantage.

• Regular Financial Review: Implement monthly or quarterly financial reviews to catch early warning signs of any cash flow tightening or increased liabilities.

---