ERAMPO LIMITED

Executive Summary

ERAMPO LIMITED is a newly formed company showing early-stage financial health with positive working capital and sufficient cash to meet short-term obligations. However, the low equity base and reliance on longer-term creditors indicate a delicate financial position typical of startups. Strengthening capital and accelerating operational development are essential steps to enhance financial resilience and support sustainable growth.

ERAMPO LIMITED - Analysis Report

Company Number: 15163766

Analysis Date: 2025-07-20 18:45 UTC

Financial Health Assessment of ERAMPO LIMITED (as at 30 September 2024)

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1. Financial Health Score: C

Explanation:
ERAMPO LIMITED is a newly incorporated company (September 2023) with a modest financial footprint. The balance sheet shows positive net current assets, indicating some short-term liquidity, but net assets and shareholders' funds are quite low. The company is in the early stages of operations, with no employees and limited trading history. The financials suggest a business in the startup phase, with some risks due to low equity but no immediate signs of distress.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£18,777	Indicates available short-term resources including cash and receivables.
Cash at Bank and on Hand	£6,229	Healthy cash cushion for a startup, important for meeting immediate payments.
Debtors	£12,548	Amount owed to the company, but high debtors relative to cash can signal collection risks.
Current Liabilities	£5,374	Debts due within one year; company can cover these with current assets (Current Ratio > 3).
Net Current Assets	£13,403	Positive working capital, a sign of liquidity and operational breathing room.
Creditors > 1 year	£12,134	Longer-term liabilities close to net current assets, indicating some leverage or debt structure.
Net Assets / Equity	£1,269	Low equity base; company relies on external financing or owner funding.
Share Capital	£100	Minimal paid-in capital, typical for a new small company.
Profit and Loss Reserve	£1,169	Retained earnings, indicating some accumulated profits or owner investment.
Employees	0	No staff employed yet, typical for startup phase.

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3. Diagnosis

ERAMPO LIMITED’s financial "vital signs" show a company that has not yet fully developed its operational capacity but maintains a "healthy cash flow" relative to immediate liabilities. The positive working capital signals no immediate liquidity "symptoms of distress." However, the low net asset value and relatively high long-term creditors suggest a fragile capital structure that could be vulnerable if business growth stalls or if debt servicing becomes difficult.

The absence of employees and modest trade debtors indicate the company is likely in a preparatory or early revenue stage, not yet fully operational. The founders or shareholders have provided initial funding, but the company will need to build operational scale and profitability to strengthen its financial "immune system."

The company is compliant with filing requirements and has no overdue accounts or returns, indicating good financial governance—a positive sign for its financial health.

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4. Recommendations

• Strengthen Equity Base: Consider additional shareholder investment or retained earnings generation to build a stronger equity cushion and reduce reliance on creditors.
• Manage Debt Prudently: Monitor the longer-term creditors carefully to ensure debt servicing does not become a strain as business scales.
• Accelerate Revenue Generation: Focus on converting debtors into cash efficiently to maintain liquidity and reduce credit risk.
• Develop Operational Capacity: Plan for hiring key personnel to support growth, ensuring cost management aligns with revenue growth.
• Maintain Rigorous Financial Controls: Continue timely filing and robust record-keeping to avoid penalties and maintain stakeholder confidence.
• Cash Flow Forecasting: Implement cash flow forecasts to anticipate liquidity needs and avoid potential cash crunches.

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