EVERMOORE CARPENTRY LIMITED

Executive Summary

Evermoore Carpentry Limited exhibits a solid financial start for a newly incorporated micro-entity, with positive net assets and working capital indicating good short-term liquidity and solvency. While the company shows no signs of financial distress, careful cash flow and debt management will be essential to maintain health as operations expand. Building reserves and monitoring liabilities will support sustainable growth and financial resilience.

EVERMOORE CARPENTRY LIMITED - Analysis Report

Company Number: 15210133

Analysis Date: 2025-07-29 14:15 UTC

Financial Health Assessment for Evermoore Carpentry Limited

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1. Financial Health Score: B

Explanation:
For a newly incorporated micro-entity with less than one full financial year of trading, Evermoore Carpentry Limited presents a generally healthy financial profile with positive net assets and working capital. The score "B" reflects a sound start with room for improvement as the company grows and faces operational challenges.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	26,999	Indicates initial investment in long-term assets like equipment or machinery—healthy foundation.
Current Assets	36,823	Short-term resources including cash & receivables—adequate for short-term obligations.
Current Liabilities	33,238	Debts due within 12 months—relatively high but covered by current assets.
Net Current Assets (Working Capital)	3,585	Positive but modest—indicates liquidity to meet short-term obligations.
Creditors (Long-term)	10,000	Medium-term debt or obligations—manageable at this scale.
Net Assets (Shareholders’ Funds)	19,585	Equity base of the company—positive and stable, indicating solvency.
Average Number of Employees	4	Small workforce consistent with micro-entity status.

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3. Symptoms Analysis

• Healthy Cash Flow Indicator: The company has a small but positive net current asset position (£3,585), which signals it can cover its short-term debts. This suggests there is no immediate liquidity distress—a crucial "heartbeat" of the business.

• Asset Base: Fixed assets of nearly £27k show capital investment has been made, which is typical for a carpentry business needing tools and machinery. This contributes to productive capacity but also ties up funds.

• Leverage Consideration: Long-term creditors of £10,000 indicate some borrowing. While not excessive, this "pressure" on financial breathing space should be monitored to avoid distress if revenues fluctuate.

• Equity Strength: Shareholders’ funds of around £19,585 show the company is solvent with assets exceeding liabilities, a positive "immune system" sign.

• Operational Scale: With just 4 employees, the company remains small, which suits its micro-entity classification. This small scale limits complexity but may also constrain growth potential.

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4. Diagnosis

Evermoore Carpentry Limited is in a stable financial condition typical for a newly incorporated micro-entity. The company shows no signs of financial distress, with positive net assets and working capital indicating healthy liquidity. However, the company's financial "vital signs" reflect the early stage of development—modest working capital and some reliance on long-term creditors suggest close cash flow management will be essential as the business develops.

No audit was required, and the accounts are unaudited, which is common for micro-entities but means financial data should be carefully reviewed as the company grows.

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5. Prognosis

If current trends continue, the company has a good chance of sustaining financial health in the near term. It must, however, maintain strong cash flow management to ensure that short-term liabilities do not overrun available assets, especially as it presumably ramps up operations after incorporation. The reliance on borrowing should be balanced with increasing equity or retained earnings as profits accumulate.

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6. Recommendations

• Cash Flow Monitoring: Maintain a tight grip on receivables and payables to ensure working capital remains positive and robust—"healthy circulation" of funds is vital.

• Debt Management: Plan for gradual repayment of the £10,000 long-term creditor to reduce financial leverage and improve solvency ratios.

• Build Reserves: As profits emerge, retain earnings within the business to strengthen shareholders’ funds and provide a buffer against unforeseen expenses.

• Operational Efficiency: With a small team, focus on productivity and cost control to improve margins and financial resilience.

• Financial Reporting: Though audit exemption applies, consider voluntary external review or internal controls to increase stakeholder confidence as the company grows.

• Growth Planning: Evaluate the timing and scale of asset purchases to avoid over-extension of capital and preserve liquidity.

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