Company Number: 15127149

Analysis Date: 2025-07-20 12:33 UTC

Financial Health Assessment: EVERBUILT LTD (As at 30 September 2024)

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1. Financial Health Score: D

Explanation:
The company shows signs of early financial distress, primarily due to net current liabilities and negative net assets. While it is a very young micro-entity with limited operational history (incorporated in 2023), the negative working capital and net liabilities are symptoms that require attention. The absence of profits or positive equity indicates the company is not yet financially stable.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Current Assets	138	Very low cash or short-term assets; limited liquidity.
Current Liabilities	332	Obligations due within a year exceed assets.
Net Current Assets	-194	Negative working capital; short-term financial strain.
Net Assets (Shareholder Funds)	-194	Negative equity; company owes more than it owns.
Average Employees	1	Very small scale operations.
Account Category	Micro	Subject to minimal reporting but financials still critical.

Interpretation:
The company’s "vital signs" resemble a patient with low immediate reserves and signs of mild distress—there is more owed in the short term than liquid assets available. This is a warning symptom similar to a weak pulse or low blood pressure in a medical check-up, indicating vulnerability.

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3. Diagnosis:

Underlying Business Health:

• The negative net current assets indicate that EVERBUILT LTD currently does not have sufficient short-term assets to cover its immediate liabilities. This is a classic symptom of liquidity stress and could impede operational capability if not addressed.
• Negative net assets (equity) is concerning, as it means liabilities exceed assets—the company is technically "insolvent" on a balance sheet basis. This condition, while common in start-ups during early growth phases, must be carefully monitored to avoid entering formal distress such as liquidation or administration.
• The company has minimal operational history and only one employee, which is normal for a start-up micro company but also means it lacks operational scale and financial buffer.
• No profit and loss figures are provided, but the absence of positive equity implies losses or initial investment shortfalls.
• The director holds 100% control, which can be positive for swift decision-making but also concentrates risk.

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4. Recommendations:

To improve the financial wellness and "health" of EVERBUILT LTD, consider the following:

• Cash Flow Management:
  Focus on increasing current assets—primarily cash and receivables. This can be achieved by accelerating sales collections, delaying non-essential payments, or injecting additional capital.

• Capital Injection:
  The director or external investors should consider injecting equity capital to restore positive net assets and provide a buffer against liabilities.

• Expense Control:
  Since the company is small with only one employee, ensure operating costs are tightly controlled to avoid unnecessary cash burn.

• Revenue Growth:
  Accelerate business development efforts in the educational support services sector to increase turnover and profitability.

• Financial Monitoring:
  Implement regular financial reviews to monitor liquidity ratios and working capital closely. Early detection of worsening liquidity can prevent a financial crisis.

• Seek Professional Advice:
  Engage a financial advisor or accountant to assist with cash flow forecasting and strategic planning.

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Medical Analogy Summary:

EVERBUILT LTD currently exhibits "symptoms of financial distress" akin to a patient with low vital signs: negative working capital and net liabilities suggest the company’s financial "pulse" is weak. Immediate interventions, such as capital infusion and strict cash management, are recommended to stabilize and improve the company’s financial "health" and avoid progression to more severe conditions like insolvency.

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