PIZZERIA MILANO U.K. LIMITED

Executive Summary

PIZZERIA MILANO U.K. LIMITED demonstrates a solid financial foundation with improving liquidity and equity growth, indicating good overall health for a young micro-entity. While the reduction in fixed assets and reliance on one director suggest areas for caution, the company’s financial vitals are stable and improving. Focused management of assets, liabilities, and contingency planning will support ongoing financial wellness and business sustainability.

PIZZERIA MILANO U.K. LIMITED - Analysis Report

Company Number: 14001821

Analysis Date: 2025-07-29 17:38 UTC

Financial Health Assessment for PIZZERIA MILANO U.K. LIMITED

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1. Financial Health Score: B

Explanation:
The company shows a good foundational financial position typical of a micro-entity in its early years. It has positive net assets and improving working capital, indicating a generally stable financial footing. However, a modest decline in fixed assets and moderate liabilities suggest some caution. Overall, the company is healthy but with room for strengthening, earning a solid B grade.

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2. Key Vital Signs

Metric	2024 Value	2023 Value	Interpretation
Fixed Assets	£13,104	£16,380	Slight decrease (≈20%). Could be due to asset disposals or depreciation, needs monitoring.
Current Assets	£8,935	£6,594	Increase (~35%), healthy sign of improved liquidity and cash or receivables on hand.
Current Liabilities	£6,713	£7,316	Slight decrease (~8%), indicating better management of short-term debts.
Net Current Assets	£2,222	£(722)	Shift from negative to positive working capital, a strong indicator of improved short-term health.
Creditors > 1 year	£2,470	£6,500	Significant reduction in long-term liabilities, less financial burden and risk.
Provisions for liabilities	£313	£238	Small increase, usually prudent to keep some provisions for known risks or future costs.
Net Assets (Equity)	£12,543	£8,920	Solid increase (~40%), reflecting retained earnings or fresh capital injections.
Employees (average)	3	3	Stable workforce size, reasonable for micro-entity scale.

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3. Diagnosis: Financial Condition and Business Health

• Liquidity and Working Capital: The company’s "vital sign" of net current assets improved significantly from a negative £722 to a positive £2,222, indicating healthier cash flow and operational fluidity. This suggests the business can meet its short-term liabilities comfortably, akin to a patient recovering from dehydration to good hydration.

• Solvency: Net assets have increased, signaling growing shareholder equity and a strong buffer against debt. The reduction in long-term creditors from £6,500 to £2,470 points to effective debt management and reduced financial strain, much like a patient reducing reliance on medication.

• Asset Management: The drop in fixed assets may reflect asset sales, depreciation, or reinvestment delays. While not immediately alarming, it is a symptom that warrants observation to ensure the company’s operational capacity is maintained.

• Size and Scale: As a micro-entity with only three employees, the company’s scale is small but consistent, which matches its industry classification of take-away food shops. This suggests a lean operation with manageable overheads.

• Ownership and Control: The sole director and 100% shareholder, Mr Marcel-Vasile Teleuca, exercises full control. This centralized governance can be efficient but also introduces dependence on one individual’s decisions and capacity.

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4. Recommendations: Steps to Enhance Financial Wellness

• Improve Asset Utilization: Review the fixed asset base to ensure that any disposals or depreciation are justified and do not impair operational capabilities. Consider reinvesting in essential equipment to maintain or improve service quality.

• Maintain Positive Working Capital: Continue the prudent management of current assets and liabilities to sustain positive net current assets. Healthy cash flow is the lifeblood of the business.

• Monitor Long-Term Liabilities: The reduction in creditors due after more than one year is positive, but ensure that any remaining or new long-term debts are manageable and aligned with cash flow forecasts.

• Build Financial Resilience: Consider gradually building cash reserves or retained earnings to buffer against unexpected shocks, much like strengthening the immune system.

• Governance and Succession Planning: Given the single director/shareholder structure, it would be wise to consider contingency planning for management continuity to reduce operational risks.

• Regular Financial Reviews: Implement routine financial health checks and forecasting to detect early symptoms of distress and act swiftly.

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