GROW EAT ENJOY LTD

Executive Summary

Grow Eat Enjoy Ltd shows a robust improvement in liquidity and net assets, indicating healthy financial progress and operational stability within its micro-entity framework. While the company maintains strong short-term financial health, its limited asset base and scale suggest opportunities for strategic investment and growth to ensure long-term sustainability.

GROW EAT ENJOY LTD - Analysis Report

Company Number: 13150040

Analysis Date: 2025-07-29 12:59 UTC

Financial Health Assessment: GROW EAT ENJOY LTD
(Financial Year Ending 31 January 2025)

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1. Financial Health Score: B

Explanation:
Grow Eat Enjoy Ltd demonstrates a solid improvement in net assets and net current assets over the latest financial year, reflecting recovery and strengthening liquidity. The company operates as a micro-entity with modest asset levels and minimal liabilities, showing a stable financial footing. However, fixed assets are zero in the latest year, and the company remains quite small with limited capital, indicating moderate overall financial resilience but with room for growth and operational robustness. Hence, a “B” grade reflects good financial health with some caution due to scale and asset base.

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2. Key Vital Signs

Metric	2025 (Latest)	Interpretation
Net Assets	£10,072	Positive and increased significantly from £962 in 2024, indicating growing shareholder equity.
Net Current Assets	£10,072	Healthy working capital - current assets well exceed current liabilities, showing liquidity strength.
Fixed Assets	£0	Zero fixed asset base could mean limited investment in long-term resources or a service-based model.
Current Assets	£13,367	Increased substantially from previous years, reflecting improved cash or receivables position.
Current Liabilities	£3,295	Stable and manageable short-term obligations compared to assets.
Share Capital	£100	Minimal share capital, typical for micro-entities, suggests limited initial funding.
Employee Count (Average)	1	Very small workforce, consistent with micro-entity status.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity & Cash Flow "Vital Signs": The company shows a "healthy pulse" in terms of liquidity. The significant increase in current assets and net current assets indicates improved cash flow management and ability to cover short-term liabilities comfortably. This is a positive symptom, suggesting operational cash inflows have improved or receivables have been collected more efficiently.

• Asset Base & Investment: The absence of fixed assets in the latest year could indicate limited investment in physical or intangible assets. This may be normal for a service-oriented business classified under SIC 96090 (“Other service activities not elsewhere classified”), but it also means the company relies heavily on current assets and operational performance rather than capital assets.

• Capital Structure: Share capital remains minimal, but net assets have increased mainly through retained earnings or reserves, showing internal growth rather than external funding. This is a good sign of organic growth and financial prudence.

• Sustainability of Operations: The company’s steady increase in net assets over the last two years from £962 to over £10,000 shows a positive trend. However, the small scale of operations (only one employee) implies that growth opportunities may be limited unless the business expands or diversifies.

• Risk Factors: The company is not in liquidation or administration, filings are up to date, and there are no apparent red flags in director appointments or company status. The small size and micro-entity status limit complexity but also indicate vulnerability to market shocks or operational disruptions.

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4. Recommendations: Steps for Improved Financial Wellness

• Build Fixed Assets or Intangible Investments: Consider investing in essential fixed assets or intangible assets (e.g., software, intellectual property) that could enhance operational capacity or competitive advantage. This would diversify asset base and support long-term stability.

• Enhance Revenue Streams & Scale: Explore strategies to expand the business beyond the current micro scale. Hiring additional staff or outsourcing could help manage growth and reduce reliance on a single individual.

• Maintain Strong Cash Flow Practices: Continue monitoring working capital closely to sustain liquidity. Efficient debtor management and controlling short-term liabilities will help avoid symptoms of financial distress.

• Capital Injection Considerations: Evaluate if additional capital infusion (through equity or loans) might be beneficial to fund expansion or asset acquisition, improving financial flexibility.

• Regular Financial Reviews: Conduct periodic financial health check-ups to detect any early symptoms of distress, especially if market conditions change or operational challenges arise.

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