EPR BUILDING SERVICES LTD

Executive Summary

EPR Building Services Ltd, a newly incorporated micro-entity, shows early-stage financial strain with negative working capital and limited cash resources, resulting in a financial health score of D. Immediate focus on improving liquidity and cash flow management is essential to stabilize the business and support future growth.

EPR BUILDING SERVICES LTD - Analysis Report

Company Number: 14988155

Analysis Date: 2025-07-29 19:10 UTC

Financial Health Assessment: EPR Building Services Ltd (As of 31 July 2024)

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1. Financial Health Score: D

Explanation:
EPR Building Services Ltd is a very young micro-entity (incorporated July 2023) with limited financial history. The financial data indicates some early-stage symptoms of financial strain, especially in working capital management, despite positive net assets. The overall financial health grade is D reflecting concerns about liquidity and operational cash flow in its infancy, requiring careful monitoring and remedial actions.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Fixed Assets	12,000	Represents investment in long-term assets like equipment; modest level for a start-up.
Current Assets	888	Very low liquid assets (cash, receivables, stock) indicating limited short-term resources.
Current Liabilities	5,600	Debts due within one year; significantly exceeds current assets, indicating liquidity risk.
Net Current Assets (Working Capital)	-4,712	Negative working capital—a key symptom of short-term financial distress or cash flow difficulty.
Total Assets less Current Liabilities	7,288	Reflects long-term asset strength after covering short-term liabilities.
Net Assets / Shareholders' Funds	1,848	Positive equity, but very low, reflecting the company's early stage and limited retained earnings.

Interpretation of Vital Signs:

• The negative net current assets indicate that the company currently has insufficient short-term assets to cover its short-term debts. This is a critical warning sign akin to a patient showing symptoms of dehydration or electrolyte imbalance—urgent attention is needed to avoid financial collapse.
• The positive net assets and fixed assets suggest some underlying strength and investment, but the company lacks "healthy cash flow" or liquid reserves to manage day-to-day obligations comfortably.
• Being a micro-entity with one employee (the director) and recently incorporated, some of these figures may reflect typical start-up cash flow pressures rather than chronic illness.

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3. Diagnosis:

EPR Building Services Ltd is in the early development stage with a financial profile characteristic of a start-up: modest fixed assets and very limited current assets. The critical symptom is its negative working capital, which means the company may struggle to pay its immediate debts as they come due without additional financing or improved operational cash flow.

The low level of shareholders' funds (equity) indicates the company has not yet generated significant retained profits and is likely reliant on initial capital injections by the owner/director. The fact that the director owns 75-100% of shares and voting rights suggests centralized control, which can allow for agile decision-making but also concentrates financial risk.

Absent audit requirements and the limited disclosure typical of micro-entities reduce transparency, so some financial nuances may not be visible.

Overall, the company exhibits "symptoms of financial stress" typical of a start-up but has potential for recovery and growth if corrective action is taken promptly.

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4. Recommendations:

To improve financial wellness and avoid progressing from "symptoms" to "critical illness," the company should consider:

• Improve liquidity:

  • Seek short-term working capital financing (e.g., overdraft facility, invoice financing).
  • Delay non-essential expenses and negotiate extended payment terms with suppliers to improve cash flow timing.

• Increase current assets:

  • Accelerate collection of any receivables or consider upfront payments for services if possible.
  • Maintain minimal stock levels to preserve cash.

• Monitor cash flow closely:

  • Implement monthly cash flow forecasts to anticipate and manage liquidity shortfalls proactively.

• Build equity base:

  • Consider additional capital injection from the owner or external investors to increase shareholders' funds and buffer financial shocks.

• Operational efficiency:

  • Review pricing, project management, and cost controls to improve profitability and generate positive cash flows.

• Plan for growth cautiously:

  • Avoid overextension before establishing a stable cash flow runway.

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Medical Analogy Summary:

EPR Building Services Ltd is like a young patient in the intensive care unit of business, showing early "symptoms" of distress in the form of negative working capital and tight liquidity. While its "heart" (equity and long-term assets) beats, the company needs immediate "treatment" in managing cash flow and financing to avoid financial collapse and ensure healthy growth.

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