EVYVE SERVICES LIMITED

Executive Summary

Evyve Services Limited demonstrates healthy short-term liquidity and working capital, but persistent net liabilities and reliance on intercompany funding indicate moderate financial stress. With strong parent company support and strategic growth prospects in EV infrastructure, the company is stable but requires equity strengthening and improved receivables management to ensure sustainable financial health.

EVYVE SERVICES LIMITED - Analysis Report

Company Number: 13130893

Analysis Date: 2025-07-29 12:17 UTC

Financial Health Assessment of Evyve Services Limited (as at 31 March 2024)

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1. Financial Health Score: C

Explanation:
Evyve Services Limited currently exhibits a mixed financial profile. While it shows strong working capital (net current assets positive), it has persistent net liabilities (negative net assets/shareholders’ funds) indicating accumulated losses or funding gaps. The company benefits from parent company support, underpinning its going concern status, but the ongoing net deficit and reliance on related party financing suggest moderate financial stress.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Current Assets	£1,116,510	Healthy short-term asset base, mainly debtors and cash
Cash at Bank	£138,033	Sufficient liquidity but could be improved
Debtors (Trade + Group)	£978,477	Large receivables - indicates revenue but risk of slow collection
Current Liabilities	£724,338	Obligations due within one year, manageable vs current assets
Net Current Assets (Working Capital)	£392,172	Positive working capital; good short-term financial health
Creditors Due After One Year	£822,317	Significant long-term liabilities owed to group companies
Net Assets / Shareholders Funds	-£430,145	Negative equity; accumulated losses or funding deficits
Share Capital	£1.00	Minimal equity capital base
Number of Employees	4	Small team, consistent with small company category

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3. Diagnosis: Financial Condition and Underlying Symptoms

• Healthy Cash Flow Indicators:
  The company has a strong current asset base and positive net current assets, which are akin to a "healthy pulse" in financial terms, demonstrating the ability to cover short-term liabilities comfortably. Cash levels have increased from £81,818 (2023) to £138,033 (2024), signaling improved liquidity.

• Symptoms of Distress:
  However, the company operates with persistent net liabilities (negative shareholders’ funds of -£430,145), reflecting accumulated losses or heavy reliance on external funding. This is like a patient with underlying chronic conditions despite stable vital signs. The significant long-term liabilities owed to group undertakings (£822,317) suggest intra-group financing is propping up the balance sheet, raising concerns about financial independence.

• Receivables Concentration:
  A large portion of current assets is tied up in debtors (£978,477), with a substantial portion owed by group undertakings. This could signal potential collection risk or inter-company balances that require careful monitoring.

• Going Concern Reliance:
  The directors have confirmed that the parent company, Evyve Limited, will continue to provide funding and support, which is vital for survival given the net liabilities. This is similar to a chronic patient needing ongoing medication or intervention to remain stable.

• Operational Scale and Growth:
  The company is small, with only 4 employees, consistent with its category and likely in a developmental or early growth phase. The strategic focus on EV charging infrastructure powered by renewable energy suggests potential for future expansion.

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4. Recommendations: Prescriptions for Financial Wellness

1. Strengthen Equity Base:
   Consider capital injection from shareholders or parent companies to improve net asset position and reduce reliance on long-term intercompany loans, which will enhance the financial resilience and reduce risk perceptions among external stakeholders.

2. Improve Receivables Management:
   Develop tighter credit control procedures to reduce days sales outstanding and convert debtors into cash more quickly, thereby improving liquidity and reducing potential bad debts.

3. Diversify Funding Sources:
   Explore external financing options beyond group loans to reduce concentration risk and improve financial independence. This could include bank facilities, grants, or strategic partnerships.

4. Monitor and Manage Long-term Liabilities:
   Negotiate terms with related parties to ensure manageable repayment schedules and avoid liquidity crunches. Transparent communication with stakeholders about these arrangements is important.

5. Focus on Operational Efficiency and Revenue Growth:
   Leverage the company’s niche in rapid EV charging powered by renewables to accelerate sales growth, which will help improve profitability and reduce accumulated losses over time.

6. Regular Financial Health Monitoring:
   Implement quarterly financial reviews focusing on cash flow, working capital, and debt levels to detect early warning signs and adjust strategies proactively.

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