SHUTTER ENVY LTD

Executive Summary

SHUTTER ENVY LTD exhibits early-stage growth with some investment in assets but faces liquidity constraints due to negative working capital and rising medium-term liabilities. The company’s equity base has weakened, signaling the need for improved cash flow management and cost control to stabilize financial health. With proactive financial oversight and operational discipline, the company can strengthen its position and avoid worsening symptoms of financial distress.

SHUTTER ENVY LTD - Analysis Report

Company Number: 13139425

Analysis Date: 2025-07-20 19:16 UTC

Financial Health Assessment Report for SHUTTER ENVY LTD

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1. Financial Health Score: C (Fair Condition)

Explanation:
SHUTTER ENVY LTD demonstrates a moderate financial condition typical for a young micro-entity company. While it maintains positive shareholder funds and some fixed assets, signs of tightening liquidity and increasing short-term and medium-term liabilities indicate caution. The financial health is neither robust nor critical but suggests the company needs to manage working capital carefully to avoid symptoms of financial distress.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	12,611	Indicates investment in long-term assets, a positive sign of business growth and capability.
Current Assets	12,554	Cash and short-term receivables show available resources for day-to-day operations.
Current Liabilities	13,083	Slightly exceeds current assets, indicating a working capital deficit—a symptom of liquidity stress.
Net Current Assets	-529	Negative working capital suggests difficulty in covering short-term obligations promptly.
Creditors due after 1 year	6,618	Medium-term liabilities add pressure on future cash flows, requiring planning for repayments.
Shareholders Funds	5,464	Positive equity base but reduced significantly from prior year (£9,751), indicating net losses or asset write-downs.
Company Size Category	Micro	Minimal filing requirements; financial data is limited but sufficient for this assessment.
Average Employees	2	Small workforce consistent with micro category; limited scale of operations.

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3. Diagnosis: Financial Condition Overview

SHUTTER ENVY LTD is a micro private limited company engaged in retail sales outside conventional stores. The financial “vitals” show a company in the early stages of growth, with some investment in fixed assets (£12,611) reflecting capital expenditure likely related to operational capacity.

However, the “symptoms” reveal that current liabilities slightly exceed current assets causing a negative working capital of £529. This is a cautionary sign akin to a patient showing early signs of dehydration—cash flow is tight, and the business may struggle to meet short-term obligations without careful management. The presence of medium-term liabilities (£6,618) adds to the financial burden and potential strain on future cash flows.

Notably, shareholders’ funds have decreased from £9,751 in 2022 to £5,464 in 2023, which may indicate accumulated losses or asset impairments. This reduction weakens the company’s equity buffer against unforeseen financial shocks.

On the positive side, the company is compliant with filing deadlines, indicating good governance and reducing the risk of regulatory penalties. The stable employee count suggests consistent operational activity, though scale remains modest.

Overall, the diagnosis points to a company with modest capital structure and some liquidity challenges that require monitoring. While not in immediate financial distress, the "symptoms" call for proactive cash flow management to avoid deterioration.

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4. Recommendations: Actions to Improve Financial Wellness

• Improve Working Capital Management:
  Focus on accelerating receivables collection and negotiating extended payment terms with suppliers to restore positive net current assets and healthy liquidity—a "hydration" strategy for cash flow.

• Monitor and Plan for Medium-Term Liabilities:
  Develop a repayment schedule or consider refinancing options to spread out liabilities falling due after one year, reducing future cash flow pressure.

• Cost Control and Profitability Measures:
  Analyze expense structure and sales margins to identify areas to improve profitability, aiming to rebuild shareholders’ funds and strengthen financial resilience.

• Regular Financial Reviews:
  Implement monthly cash flow forecasting to detect early signs of distress and take corrective actions promptly.

• Explore Growth Opportunities Judiciously:
  Given the micro size and limited resources, growth initiatives should be carefully evaluated for their impact on liquidity and capital requirements.

• Maintain Strong Corporate Governance:
  Continue timely filing and compliance to avoid penalties which could exacerbate financial stress.

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