MADE IN HEAVEN (ESSEX) LTD

Executive Summary

MADE IN HEAVEN (ESSEX) LTD is exhibiting healthy financial indicators typical for a young, small private manufacturing company, with improving liquidity, positive working capital, and growing retained earnings. The company maintains a lean operation without employees, which limits risk but also growth capacity. Strategic attention to controlled scaling and cash flow management will support sustainable future development.

MADE IN HEAVEN (ESSEX) LTD - Analysis Report

Company Number: 13993776

Analysis Date: 2025-07-29 19:35 UTC

Financial Health Assessment for MADE IN HEAVEN (ESSEX) LTD

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1. Financial Health Score: B

Explanation:
The company shows a solid foundation in its early life cycle with positive net current assets, increasing shareholders’ funds, and growing retained earnings. The cash position is adequate relative to current liabilities, indicating healthy liquidity. However, as a young company with limited asset base and no employees, it remains in the growth phase and should monitor operational scale and cash flow carefully. This score reflects a generally healthy financial condition with room for improvement as the business matures.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Cash at Bank	5,117	3,049	Improving liquidity; positive cash buffer for short-term needs
Current Liabilities	1,944	1,308	Manageable short-term obligations
Net Current Assets	3,173	1,741	Positive working capital, indicating ability to cover debts
Shareholders' Funds	3,173	1,741	Growing equity, reflecting retained profits and financial strength
Retained Earnings	3,073	1,641	Accumulated profits rising, a key indicator of profitability
Employees	0	0	No staff employed, suggesting lean operations or owner-led

Interpretation:

• Liquidity: Cash reserves exceeding current liabilities by a comfortable margin signal a "healthy cash flow" symptom, critical for meeting immediate obligations without stress.
• Working Capital: Positive net current assets demonstrate the company’s ability to fund day-to-day operations without reliance on external borrowing—akin to a patient with stable vital signs.
• Profitability: The increase in retained earnings indicates that the company is generating profits, a "sign of recovery," supporting reinvestment and growth.
• Operational Scale: Absence of employees suggests a startup or owner-run model, meaning scalability and resource constraints are potential concerns.

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3. Diagnosis

MADE IN HEAVEN (ESSEX) LTD presents with healthy financial "vital signs" for a young private limited company in the manufacturing sector of women's outerwear. The company is showing consistent improvement in liquidity and equity, underpinned by profitability as evidenced by rising retained earnings.

The absence of employees indicates a lean operational model, possibly limiting growth speed but reducing fixed overhead costs. The balance sheet shows no long-term liabilities or fixed assets, limiting financial risk but also indicating limited physical capital investment at this stage.

No indications of financial distress or liquidity crunch are present. However, the company’s relatively small size and early stage present natural vulnerabilities to external shocks or operational scaling challenges.

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4. Recommendations

• Maintain Cash Reserves: Continue building cash reserves to ensure a buffer against unexpected expenses or slow sales periods, preserving the "healthy cash flow" condition.
• Plan for Growth: Consider gradual investment in fixed assets or employees to support scaling operations, but avoid overextending financial resources prematurely.
• Monitor Liabilities: Keep current liabilities under control to prevent liquidity strain as business volume increases.
• Formalize Financial Controls: Implement basic financial management systems and budgeting processes to track profitability drivers as complexity grows.
• Explore Revenue Diversification: To strengthen resilience, consider expanding product lines or markets to reduce business risk concentration.
• Prepare for Audit Readiness: Although currently exempt, preparing for potential audit requirements as the company grows will enhance credibility with financiers and suppliers.

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