EU GROUP EGROWN MEDIA LTD

Executive Summary

EU GROUP EGROWN MEDIA LTD exhibits a stable financial foundation for a micro-entity in its start-up phase, with strong liquidity and positive equity. While the company currently shows no signs of financial distress, proactive cash flow management and governance enhancements are recommended to support sustainable growth and long-term financial health.

EU GROUP EGROWN MEDIA LTD - Analysis Report

Company Number: 15307164

Analysis Date: 2025-07-29 20:24 UTC

Financial Health Assessment Report for EU GROUP EGROWN MEDIA LTD

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1. Financial Health Score: B

Explanation:
For a company incorporated less than two years ago and classified as a micro-entity, EU GROUP EGROWN MEDIA LTD shows a solid financial footing with positive net current assets and net assets indicating a stable start. While the scale is small due to the company's infancy, the absence of debt pressure and positive equity contribute to a "B" grade—healthy but early stage, with room for growth and further financial robustness.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£5,743	Indicates cash or easily convertible assets available to cover short-term obligations.
Current Liabilities	£886	Debts and obligations due within one year; relatively low, reducing liquidity risk.
Net Current Assets	£4,857	Positive working capital; a “healthy cash flow” symptom that suggests the company can meet its short-term liabilities comfortably.
Total Assets Less Current Liabilities	£5,857	Reflects total resources available after covering immediate debts.
Net Assets / Shareholders’ Funds	£5,857	Positive equity indicates that owners have a stake in the company and it is not insolvent.
Called up share capital not paid	£1,000	Capital committed but not yet paid; a minor note but no immediate distress signal.
Employees	0	No employees yet, typical for a start-up or early-stage company.

Industry Context: Operating in advertising agencies, management consultancy, and information services, the company is positioned in sectors that often require low fixed asset investment but rely heavily on intellectual capital and cash flow management.

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3. Diagnosis: What the Financial Data Reveals

• Healthy Liquidity: The company shows a healthy liquidity position with net current assets nearly five times the current liabilities. This implies it has a strong ability to pay off short-term debts without stress—a sign of good financial “vital signs.”

• Positive Equity: Net assets and shareholders’ funds are positive, meaning the company’s total assets exceed its liabilities. This is a fundamental sign of solvency and financial stability.

• Early Stage with Limited Scale: As a micro-entity incorporated recently, the company has minimal asset base and no employees yet. This is typical for a start-up phase and means financial metrics should be monitored as it grows.

• No Audit Requirement: The company has qualified for audit exemption, which is common for micro companies and reduces compliance cost, but also means less external financial scrutiny.

• Capital Structure: Called-up share capital not yet paid is a minor concern but not unusual in early stages; this should be resolved promptly to avoid future cash flow issues.

• Director & Control: Single director with significant control (75-100%) indicates centralized decision-making, which can be efficient but also a risk if not balanced with other governance mechanisms.

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4. Recommendations: Actions to Improve Financial Wellness

• Monitor Cash Flow Diligently: Maintain the “healthy cash flow” by keeping track of receivables and payables to avoid future liquidity crunches as the company grows.

• Complete Share Capital Payment: Ensure the called-up share capital is fully paid to strengthen the company’s equity base and avoid potential legal or financial complications.

• Prepare for Growth: As the company expands, consider hiring employees and investing in assets aligned with core activities. This will require careful budgeting to maintain liquidity.

• Governance: Given the control concentration, consider introducing additional directors or advisory roles to enhance oversight and reduce operational risk.

• Regular Financial Reviews: Even though audit exemption applies, conduct periodic internal reviews or informal audits to proactively identify financial “symptoms” of distress before they escalate.

• Plan for Future Reporting: Keep track of filing deadlines for accounts and confirmation statements to avoid penalties and preserve company reputation.

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