EVERAFTER SERVICES LTD

Executive Summary

EVERAFTER SERVICES LTD is currently facing financial challenges marked by negative net assets and limited liquidity, indicating early signs of distress. Immediate focus on cash flow management, capital restructuring, and operational efficiency is essential to stabilize and improve its financial health. With appropriate corrective measures, the company has potential to recover and build a sustainable financial foundation.

EVERAFTER SERVICES LTD - Analysis Report

Company Number: 14157460

Analysis Date: 2025-07-29 20:51 UTC

Financial Health Assessment: EVERAFTER SERVICES LTD (to 30 June 2024)

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1. Financial Health Score: D

Explanation:
The company currently exhibits signs of financial strain, primarily reflected in negative net assets and a growing creditor balance. While it remains active with filings up-to-date, the financial "vital signs" indicate underlying distress requiring attention. The absence of employees and minimal current assets also flag operational scale constraints. The score D reflects a fragile financial state that, if unaddressed, could worsen.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£33	Extremely low liquidity buffer; almost no cash or receivables to cover short-term needs.
Current Liabilities	£545	Short-term obligations exceed current assets by a large margin.
Net Current Assets	£33	Positive but negligible, indicating little working capital to sustain operations.
Creditors > 1 Year	£545	Significant long-term debt or payables, increasing financial burden.
Net Assets (Shareholders' Funds)	£-512	Negative net worth; liabilities exceed assets, a symptom of financial distress.
Employees	0	No staff, possibly low operational activity or reliance on contractor/freelance basis.

Interpretation of Vital Signs:
The company has a "thin pulse" in liquidity terms — cash or liquid assets are nearly non-existent, suggesting an inability to cover immediate debts comfortably. The negative net assets, worsening from £-70 in 2023 to £-512 in 2024, mirror a "weak heart"—a balance sheet that is under significant strain. The build-up of creditors especially those due after one year signals increasing financial obligations that may be difficult to service without additional capital or improved cash flows.

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3. Diagnosis

Underlying Condition:
EVERAFTER SERVICES LTD exhibits symptoms consistent with a company in early-stage financial distress. The negative net assets and increasing creditors suggest that the company has been operating with liabilities exceeding its assets for at least two years, and the situation is worsening. The lack of employees and minimal current assets imply either a startup phase with limited trading or reduced business activity. The company's reliance on external financing or deferred payments is evident, but this situation is not sustainable without corrective measures.

Potential Causes:

• Insufficient capital injection or retained earnings to support growth or operations.
• Possible over-reliance on creditors or delayed payments to suppliers.
• Low turnover or sales insufficient to generate positive cash flow.
• Early-stage business still investing or struggling to break even.

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4. Prognosis

If current trends continue without intervention, the company risks escalating financial instability. The negative equity position could deter future investors or lenders, and the small current asset base limits operational flexibility. However, as a micro-entity, the company might still be in a developmental phase, and with strategic corrective action, recovery is possible.

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5. Recommendations

Cash Flow Management:

• Establish a strict cash flow forecast and monitor liquidity weekly to avoid surprises.
• Prioritize payment of short-term liabilities to avoid supplier or creditor disputes.

Capital Structure:

• Consider capital injection from shareholders or external investors to bolster net assets and reduce reliance on creditors.
• Explore renegotiation of creditor terms, especially long-term payables, to ease cash outflows.

Operational Review:

• Assess business model viability—identify if the current retail focus on furniture and lighting is generating sufficient revenue.
• Explore opportunities to increase sales, diversify products, or improve margins.

Cost Control:

• Maintain low overhead by continuing with zero employees if feasible, or carefully plan any staffing needs aligned with revenue growth.
• Review all discretionary expenses for possible reduction.

Financial Reporting and Planning:

• Continue timely and accurate filings to maintain compliance and stakeholder confidence.
• Engage with a financial advisor or accountant to develop a turnaround plan and monitor progress.

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Medical Analogy Summary

EVERAFTER SERVICES LTD currently shows "symptoms of financial distress" akin to a patient with a weak heart and low blood pressure—its balance sheet is under strain with negative net assets and scarce liquid reserves. Without timely "treatment" in the form of capital infusion and operational adjustments, the company risks progressing toward a critical condition. However, with proactive "intervention," recovery and healthy financial function remain achievable.

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