Company Number: 14365537

Analysis Date: 2025-07-20 14:59 UTC

Financial Health Assessment for ETTORE DESIGN LIMITED

---

1. Financial Health Score: D

Explanation: The company exhibits significant financial distress, indicated by a negative net asset position and current liabilities far exceeding current assets. The score "D" reflects serious warning signs that require urgent attention to restore financial stability.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,640	Very low liquid assets, limiting flexibility.
Current Liabilities	26,387	High short-term debts, potential liquidity risk.
Net Current Assets	-24,747	Negative working capital indicates cash flow issues.
Total Assets Less Current Liabilities	-24,746	Negative net assets show insolvency on paper.
Shareholders' Funds (Equity)	-24,746	Negative equity signals accumulated losses or under-capitalisation.
Average Number of Employees	1	Very small operational scale (micro entity).

---

3. Diagnosis: Financial Symptoms and Underlying Health

• Liquidity Distress: The company’s current liabilities exceed current assets by a large margin (£26,387 liabilities vs £1,640 assets), indicating an inability to meet short-term obligations from available resources. This is akin to a patient whose vital signs show dangerously low blood pressure – an immediate concern.

• Negative Net Assets: The company’s net assets and shareholders’ funds are negative by £24,746. This “balance sheet anemia” implies that liabilities outweigh assets. In financial terms, the company is technically insolvent, a symptom often associated with serious financial illness.

• Going Concern Warning: Although the directors state the accounts are prepared on a going concern basis supported by directors’ ongoing support, the financials reveal a fragile condition. Dependency on director support is similar to a patient relying on external medical intervention rather than natural recovery.

• Early Stage & Micro Entity Context: The company was incorporated in September 2022 and is classified as a micro entity. This early stage and small scale explain low asset and employee levels but do not excuse the significant negative net asset position.

• No Audit Required: As a micro-entity, the company is exempt from audit, which reduces transparency but is common for companies of this size.

---

4. Recommendations: Steps to Improve Financial Wellness

• Inject Additional Capital: To treat the “negative equity” condition, directors or shareholders should consider capital injections to restore positive net assets and improve liquidity.

• Reduce Short-Term Liabilities: Negotiating extended payment terms or restructuring debts will help reduce current liabilities and improve working capital.

• Increase Revenue Generation: As a retailer and wholesaler of footwear and clothing, focus on boosting sales through marketing, partnerships, or diversification to increase cash inflows.

• Cost Control and Expense Management: Monitor and minimize overheads to avoid further erosion of equity.

• Regular Financial Monitoring: Implement monthly cash flow forecasting and financial reviews to catch symptoms of distress early.

• Plan for Growth and Scaling: Given the micro entity status and single employee, plan gradual scaling to build operational resilience.

---

Summary

ETTORE DESIGN LIMITED currently suffers from negative net assets and poor liquidity, indicating a precarious financial state. The company depends heavily on director support to continue operations. Immediate action is necessary to improve cash flow and restore equity. With targeted capital infusion and operational improvements, there is potential to recover and grow.