LONDON E-BIKES LIMITED

Executive Summary

LONDON E-BIKES LIMITED shows solid financial health with positive net assets and manageable liabilities, reflecting a stable business foundation. However, recent declines in liquidity suggest caution is needed to maintain smooth operations. Strengthening cash flow management and governance stability will be key to sustaining financial wellness and supporting future growth.

LONDON E-BIKES LIMITED - Analysis Report

Company Number: 13136463

Analysis Date: 2025-07-29 20:52 UTC

Financial Health Assessment for LONDON E-BIKES LIMITED

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1. Financial Health Score: B

Explanation:
LONDON E-BIKES LIMITED demonstrates generally stable financial health for a micro-entity. The company maintains positive net current assets (working capital) year-on-year, indicating it can cover short-term obligations. There is growth in net assets and shareholders' funds, which signals retained earnings or capital injections. However, a recent decrease in current assets and net current assets in 2024 compared to 2023 and a relatively small capital base highlight some vulnerability and room for improvement. Overall, the company is financially sound but should monitor liquidity closely.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	42,321	Indicates liquid resources available; slight decline from prior year suggests cautious monitoring needed.
Current Liabilities	32,579	Debts due within a year; manageable given current assets.
Net Current Assets	9,742	Positive working capital; “healthy cash flow” symptom but reduced from 2023’s £33,220.
Net Assets (Equity)	9,742	Positive net worth showing company owns more than it owes; increased from previous years.
Share Capital	100	Minimal share capital, common for micro-entities; equity growth mainly from retained earnings.
Average Employees	3	Small workforce consistent with micro-entity status; efficient operation likely required.

Additional Observations:

• No audit requirement due to micro-entity status, which limits financial detail available.
• Directors’ resignation and appointments indicate some governance changes; could affect strategy or operations.

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3. Diagnosis: Financial Condition

The company exhibits signs of financial stability with manageable short-term obligations and a positive equity base, which are core indicators of a "healthy heart" in business terms. The steady increase in net assets from £2,101 in 2021 to £9,742 in 2024 shows the company is building its financial "muscle." However, the decline in current assets and net working capital in the latest year could be an early "symptom" of tightening liquidity or increased short-term pressures.

The modest increase in net assets suggests the company is either retaining profits or receiving shareholder funds, both positive signs. The steady number of employees implies operational consistency but also points to limited scale.

Governance shifts with multiple director changes may indicate some internal restructuring or strategic pivoting, which should be monitored as it can impact financial stability.

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4. Recommendations

To maintain and improve financial wellness, consider the following:

• Strengthen Liquidity Management:
  The decrease in current assets signals a need for tighter cash flow management. Regular cash flow forecasts and quick collection of receivables can help prevent liquidity "stress."

• Build Cash Reserves:
  Increasing liquid assets will provide a buffer against unforeseen expenses or downturns, akin to building the company's financial "immune system."

• Monitor and Control Short-Term Liabilities:
  Keeping creditors manageable ensures the company avoids "respiratory distress" due to financial pressure.

• Review Governance Stability:
  Frequent director changes may unsettle strategic focus. Clear leadership and consistent management will support long-term financial health.

• Plan for Growth:
  Explore opportunities to increase turnover or diversify services within the repair sector to expand asset base and improve resilience.

• Consider Formal Financial Reporting Beyond Micro-Entity Threshold:
  As the company grows, more detailed accounts can provide better insight for decision-making and attract investor confidence.

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