Company Number: 13039423

Analysis Date: 2025-07-29 17:42 UTC

Financial Health Assessment of EVO ULTRA LIMITED

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1. Financial Health Score: C

Explanation:
EVO ULTRA LIMITED shows a marginally positive but precariously low net asset position as of the latest financial year. While the company is solvent, the significant decline in net assets compared to the prior year and the razor-thin net current assets indicate early symptoms of financial distress. The company maintains compliance with filing deadlines, which is a positive governance indicator, but the financial "vital signs" suggest caution.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	87,201	64,346	Healthy increase in current assets, indicating improved liquidity.
Current Liabilities	86,698	59,528	Significant rise in short-term obligations, nearing current assets level.
Net Current Assets (Working Capital)	503	12,485	Sharp decline to near zero working capital, indicating strained short-term liquidity.
Net Assets (Equity)	503	12,485	Severe erosion of shareholder equity, warning sign of financial fragility.
Share Capital	10	10	Minimal capital investment, typical for a micro-entity.
Employee Count	1	1	Stable staffing level, low overheads.

Interpretation of Vital Signs:

• Liquidity: Current assets roughly equal current liabilities, which means the company barely holds enough liquid resources to cover immediate debts. This "borderline healthy cash flow" suggests vulnerability to any unexpected cash outflows.
• Solvency: Net assets have dropped dramatically from £12,485 to £503, signaling that the company's cushion against losses or shocks is nearly depleted. This is a "symptom of distress," indicating potential solvency risks if negative trends continue.
• Governance and Compliance: Up-to-date filings and absence of overdue accounts demonstrate good compliance discipline.

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3. Diagnosis

EVO ULTRA LIMITED is in a fragile financial state, characterized by a dangerously low buffer of equity and working capital. The company has experienced a significant decline in net assets over one year, which could be due to operational losses, increased liabilities, or asset write-downs (details not disclosed in the filleted accounts). This situation resembles a patient with "borderline vital signs" — not yet critical, but requiring immediate attention to prevent deterioration.

The company's micro-entity status and single director control (Mr James Breese with 75-100% ownership and voting rights) suggest a closely held business with limited external capital injection. The increase in current liabilities relative to assets could indicate reliance on short-term financing or delayed payments, which may pressure cash flow.

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4. Recommendations

To improve financial wellness and avoid worsening distress symptoms, the following actions are advised:

• Enhance Cash Flow Management:
  Tighten control over receivables and payables to maintain a positive working capital buffer. Consider negotiating longer payment terms with creditors or accelerating collections.

• Explore Capital Injection:
  Given the minimal share capital and equity erosion, consider introducing additional equity investment or shareholder loans to strengthen solvency.

• Cost Control and Profitability Review:
  Conduct a thorough review of operational costs and revenue streams to identify where margins can be improved or costs reduced.

• Financial Forecast and Risk Assessment:
  Prepare detailed cash flow forecasts and stress tests to anticipate liquidity shortages and plan mitigation strategies.

• Engage Professional Advice:
  Given the risk indicators, consulting with financial advisors or accountants for tailored recovery and growth planning is prudent.

• Maintain Compliance Discipline:
  Continue timely filings and transparent record-keeping to avoid penalties and preserve stakeholder confidence.

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