Company Number: 14155390

Analysis Date: 2025-07-29 14:56 UTC

Financial Health Assessment: EVERGREEN SELF STORAGE LIMITED

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1. Financial Health Score: C

Explanation:
The company demonstrates a moderate financial position with some areas of concern, particularly its working capital (net current assets) turning negative in the latest year. While the net assets and shareholders' funds reflect positive equity, the negative net current assets suggest liquidity pressure or short-term cash flow challenges. Overall, the company is operating but shows symptoms that require attention to secure a healthier financial future.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£36,540	Stable investment in long-term assets; consistent over 3 years.
Current Assets	£16,458	Declined sharply from £37,995 (prior year), mainly cash reduction.
Cash & Cash Equivalents	£16,272	Decreased significantly from previous years (£39,055 in 2022).
Current Liabilities	£17,582	Slightly reduced but remains close to current assets, causing liquidity concerns.
Net Current Assets	-£1,124	Negative working capital; "symptom of distress" indicating potential cash flow issues.
Total Assets Less Current Liabilities	£35,416	Declined from £52,960 in 2023, indicating reduced short-term asset coverage.
Net Assets (Shareholders’ Funds)	£30,001	Positive equity increased from £16,420 (prior year); suggests retained earnings or capital injection.

Vital Signs Interpretation:

• The fixed assets base is stable, showing no impairment or disposals.
• Current assets and cash have decreased notably, a warning sign for liquidity.
• Current liabilities remain high relative to current assets, causing a negative net current asset position, a key red flag in short-term financial health.
• Despite this, net assets have increased, implying the company has either retained profits or received capital contributions, which is a positive sign for solvency.

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3. Diagnosis

Underlying Business Health:

• The company is relatively young (incorporated 2022) and classified as a small private limited company operating in real estate letting.
• The negative net current assets ("working capital deficit") is a symptom that the company may face short-term liquidity strain—potential difficulty in meeting immediate obligations without additional financing or cash inflows.
• The large drop in cash and current assets from the previous year suggests either increased operational cash outflows or payments of liabilities without replenishment.
• The company's net assets position is improving, which is a "healthy backbone" showing it is not insolvent and has equity cushioning.
• The trade creditors and other current liabilities remain significant, and the presence of long-term payables reduced in 2024 indicates some restructuring or repayment of longer-term obligations.
• The company employs 1 person, indicating a lean operation but also limited human resources for scaling.
• No audit was required, but the accounts are prepared under UK GAAP small companies regime, which limits insight into profitability (no P&L provided).
• Director changes and shareholding structure show concentrated control, which may aid quick decision-making but also introduces dependency risk.

Summary:
Evergreen Self Storage Limited exhibits "signs of financial strain" primarily through reduced liquidity and negative working capital. However, the company is solvent with positive net assets and shareholder funds, indicating potential to recover if cash flow is managed effectively.

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4. Recommendations

Short-Term Actions:

• Improve Cash Management: Prioritize collecting receivables promptly and control payables to maintain positive working capital. Consider negotiating extended payment terms with suppliers.
• Enhance Liquidity Buffer: Explore short-term financing options (e.g., overdraft, invoice financing) to cover liquidity gaps until cash flow stabilizes.
• Monitor Cash Flow Weekly: Implement rigorous cash flow forecasting to anticipate short-term funding needs and prevent liquidity crises.

Medium to Long-Term Actions:

• Review Cost Structure: Analyze operational expenses to identify savings opportunities without compromising service quality.
• Increase Revenue Streams: Explore marketing or partnerships to boost occupancy rates or introduce new services to increase income.
• Equity or Debt Injection: Consider capital injection from shareholders or external investors to strengthen the balance sheet and fund growth.
• Governance and Reporting: Although audit exemption applies, consider voluntary audit or enhanced financial reporting for transparency and stakeholder confidence.

Overall, the goal is to restore a “healthy cash flow” and positive working capital, strengthening the company's financial resilience and supporting sustainable growth.

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