ERSTEN LIMITED

Executive Summary

ERSTEN LIMITED currently shows minimal financial activity and assets, indicating an early stage or dormant status with stable but very limited financial health. The company has no liabilities but also lacks operational scale and capital to grow. Immediate focus should be on capital raising and initiating business operations to improve financial vitality and enable sustainable growth.

ERSTEN LIMITED - Analysis Report

Company Number: 13816479

Analysis Date: 2025-07-29 15:50 UTC

Financial Health Assessment Report for ERSTEN LIMITED

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1. Financial Health Score: D

Explanation:
The company’s financial health is currently fragile. While there are no liabilities and a small positive net asset base, the total assets and operational scale are minimal. The company shows symptoms of being in a very early stage or dormant operationally, with virtually no financial activity, employees, or fixed assets. This low activity level limits its capacity to generate sustainable revenue or absorb shocks, hence the grade D reflects caution.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	0	No investment in long-term assets; no physical base.
Current Assets	100	Very low cash or receivables, indicating minimal liquidity buffer.
Current Liabilities	0	No short-term debts; no immediate financial pressure.
Net Current Assets	100	Positive but negligible working capital indicating minimal operational activity.
Total Net Assets	100	Extremely low equity base; minimal company valuation.
Shareholders’ Funds	100	Entirely composed of minimal share capital.
Average Number of Employees	0	No workforce, indicating either no operations or fully outsourced/no operational activities.

• Liquidity: Healthy in the sense no debts exist, but the cash or equivalent is extremely limited.
• Solvency: Technically solvent with positive net assets, but asset base is negligible.
• Operational Activity: No employees and no fixed assets suggest no active business operations.
• Growth Potential: Minimal capital and no operational scale limit growth prospects.

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3. Diagnosis

ERSTEN LIMITED exhibits the financial "vital signs" of a micro-entity just starting or possibly dormant. The balance sheet shows a static position over three years with no change in assets or liabilities, indicating no operational growth or activity. The absence of employees and fixed assets further supports the diagnosis of a very early-stage company or one that is effectively inactive.

While the company currently avoids distress symptoms such as liabilities or negative equity, it lacks the financial "muscle" to scale or sustain operations without additional capital or revenue generation. There is no evidence of cash flow generation or business operations, which is akin to a patient with stable but minimal vital signs — not in immediate danger, but unable to improve health without intervention.

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4. Recommendations

• Capital Injection: Consider increasing share capital or securing funding to build a working capital buffer that supports business activities.
• Operational Initiation: If not yet active, start generating business transactions to build assets and revenue streams.
• Asset Acquisition: Invest in fixed assets or intellectual property to establish a tangible or intangible asset base.
• Financial Monitoring: Maintain strict control over cash flow and liabilities as operations commence to avoid distress.
• Strategic Planning: Develop a clear business plan with financial projections to guide sustainable growth.
• Compliance: Continue timely filing of accounts and confirmation statements to maintain company status and credibility.

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