SEVRAN GARDENS&LANDSCAPING LTD

Executive Summary

SEVRAN GARDENS&LANDSCAPING LTD demonstrates a solid initial capital base but faces early liquidity challenges indicated by negative working capital. As a micro-sized start-up in the landscaping industry, careful cash flow management and short-term financing strategies are recommended to ensure smooth operations and future growth. With proactive financial oversight, the company can stabilize its financial health and build a strong foundation.

SEVRAN GARDENS&LANDSCAPING LTD - Analysis Report

Company Number: 15168666

Analysis Date: 2025-07-20 19:05 UTC

Financial Health Assessment for SEVRAN GARDENS&LANDSCAPING LTD

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1. Financial Health Score: C

Explanation:
As a newly incorporated micro entity (incorporated in September 2023), SEVRAN GARDENS&LANDSCAPING LTD shows foundational financial stability with positive net assets but exhibits early signs of working capital stress. The absence of profit and loss data limits full assessment, but current liabilities exceeding current assets indicate potential liquidity constraints, typical for a young start-up. The score reflects a cautious outlook, with room for improvement in cash flow management.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	9,856	Modest investment in long-term assets, appropriate for micro size.
Current Assets	14,754	Limited short-term resources, includes cash and receivables.
Current Liabilities	16,764	Obligations due within one year, slightly higher than current assets.
Net Current Assets	-2,010	Negative working capital signals potential short-term liquidity issues.
Total Assets Less Current Liabilities	7,846	Positive overall asset base after settling short-term debts.
Net Assets / Shareholders’ Funds	7,846	Equity capital provided by owner, showing initial capitalization.
Number of Employees	2	Small workforce, manageable overheads but limited operational scale.

Interpretation of Vital Signs:
The negative net current assets ("symptom of distress") suggest the company may face difficulties meeting short-term obligations without additional cash inflows or financing. However, a positive net asset position ("healthy capital base") indicates the company is not insolvent and has a buffer from owner equity. The modest fixed assets reflect an asset-light model common in landscaping businesses.

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3. Diagnosis

Underlying Business Health:
SEVRAN GARDENS&LANDSCAPING LTD is in the early stages of its business life cycle. The financial "vital signs" reveal a start-up with adequate initial capitalization but constrained liquidity. The negative working capital might be a result of timing mismatches between payments and receipts or initial investment in operations.

No profit and loss figures are provided, making it difficult to assess operational profitability or cash flow performance directly. The director’s full ownership and control allow for agile decision-making but also concentrate financial risk.

Overall, the company is not in immediate danger ("no critical symptoms of failure"), but the liquidity "symptom" needs prompt attention to support ongoing operations and growth.

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4. Recommendations

• Improve Cash Flow Management:
  Establish a detailed cash flow forecast to monitor timing of cash inflows and outflows. Early identification of potential shortfalls can help avoid liquidity crises.

• Negotiate Payment Terms:
  Work with suppliers and customers to extend payables and accelerate receivables respectively, improving net current assets.

• Access Short-Term Financing:
  Consider short-term credit facilities or owner loans to buffer working capital needs during growth phase.

• Monitor Expenses and Scale Gradually:
  Keep overheads and fixed asset investments aligned with revenue growth to avoid overextension.

• Prepare Profit & Loss Reports:
  Even if not mandated for micro entities, maintain internal P&L statements for better financial insight and decision-making.

• Leverage Director Expertise:
  Utilize the director’s control and involvement to make swift adjustments to business strategy based on financial data.

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