EPM LANDSCAPING LTD

Executive Summary

EPM Landscaping Ltd demonstrates a healthy and improving financial position with strong liquidity, growing net assets, and effective management of liabilities. While the company enjoys a strong cash position and positive working capital, attention to asset maintenance and debtor management will be key to sustaining this financial wellness. Overall, the company is financially stable and poised for cautious growth.

EPM LANDSCAPING LTD - Analysis Report

Company Number: 13888990

Analysis Date: 2025-07-20 19:06 UTC

Financial Health Assessment: EPM LANDSCAPING LTD

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1. Financial Health Score: B

Explanation:
EPM Landscaping Ltd shows a solid and improving financial position with strong net assets and positive working capital. The company has demonstrated growth in cash reserves and net assets over recent years, indicating healthy financial "vital signs." However, some cautious notes on asset depreciation and creditor balances suggest room for improvement, keeping the score at B rather than A.

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2. Key Vital Signs

Metric	2025 Figure (£)	Interpretation
Current Assets	44,982	Healthy increase from prior years, showing improved liquidity.
Cash at Bank	36,111	Strong cash position ("healthy cash flow pulse"), providing operational flexibility.
Debtors	6,981	Increase in receivables may indicate growing sales but requires monitoring to avoid cash flow issues.
Current Liabilities	17,822	Significantly reduced from prior year, easing short-term financial pressure ("reduced symptoms of distress").
Net Current Assets	27,160	Strong positive working capital, indicating the company can meet short-term obligations comfortably.
Net Assets (Shareholders Funds)	73,578	Increasing equity base, reflecting accumulated retained earnings and sustained profitability.
Tangible Fixed Assets (Net Book Value)	47,655	Stable asset base, though showing depreciation that signals asset aging or replacement needs.

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3. Diagnosis: Financial Condition Assessment

EPM Landscaping Ltd is exhibiting signs of robust financial health. The company has successfully reversed its previous negative working capital position seen in 2022 (£-41,471) to a strong positive working capital of £27,160 in 2025. This turnaround indicates effective management of current assets and liabilities, improving liquidity and operational stability.

The substantial increase in cash reserves (“healthy cash flow”) reflects either improved profitability or better cash collection practices. Net assets have grown steadily, more than tripling since incorporation, signaling retained earnings accumulation and sound capital management.

However, the company should be mindful of its tangible fixed assets showing steady depreciation, which may imply upcoming capital expenditure to maintain operational capacity. Debtor levels have increased, which while a sign of sales growth, could potentially create "symptoms of cash flow strain" if not collected timely.

The reduction in current liabilities, including taxation and other creditors, suggests improved creditor management and less pressure from short-term debts.

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4. Recommendations: Improving Financial Wellness

1. Maintain Strong Cash Flow Management:
   Continue monitoring debtor days closely to prevent cash flow bottlenecks. Consider tightening credit terms or improving collection processes to prevent overdue receivables.

2. Plan for Fixed Asset Maintenance or Replacement:
   The depreciation trend indicates assets are aging. Develop a capital expenditure plan to reinvest in equipment to avoid operational disruptions.

3. Monitor and Manage Tax Liabilities:
   Taxation and social security make up a significant portion of current liabilities. Ensure timely tax planning and payments to avoid penalties and maintain good standing.

4. Enhance Financial Reporting Transparency:
   Although small companies are exempt from audit, consider periodic internal reviews or external advisory support to spot early signs of financial distress or opportunities for efficiency.

5. Leverage Positive Equity for Growth:
   With a strong equity base, the company could explore strategic investments or expansion plans cautiously, ensuring they align with cash flow capabilities.

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