ARTISAN JOINERY BUILDING AND PROPERTY MAINTENANCE LTD

Executive Summary

Artisan Joinery Building and Property Maintenance Ltd has demonstrated a strong financial recovery in the latest year, shifting from prior losses to a stable and positive net asset position. While the introduction of long-term debt adds a layer of risk, the company's improved liquidity and asset base suggest a healthier financial state. Continued focus on cash flow management, debt servicing, and profitability will be essential to sustain this positive trajectory.

ARTISAN JOINERY BUILDING AND PROPERTY MAINTENANCE LTD - Analysis Report

Company Number: 12605261

Analysis Date: 2025-07-20 16:09 UTC

Financial Health Assessment for Artisan Joinery Building and Property Maintenance Ltd

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1. Financial Health Score: C+

Explanation:
The company has shown significant improvement over recent years, moving from negative net assets and working capital deficits to a positive and stable financial position in the latest year. However, the recovery is recent and depends on managing increased liabilities, including long-term debt. While this turnaround is encouraging, there remains a moderate risk profile that requires careful monitoring and prudent management.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	38,066	Healthy investment in long-term assets, up from minimal levels, indicates business growth.
Current Assets	113,172	Strong liquidity position, significant growth in cash or receivables supporting operations.
Current Liabilities	97,294	Increased short-term obligations; manageable given current assets but requires monitoring.
Net Current Assets (Working Capital)	15,878	Positive working capital, indicating sufficient short-term resources to cover liabilities.
Creditors Due After One Year	17,210	Introduction of long-term debt, a new financial obligation that must be serviced over time.
Net Assets (Shareholders’ Funds)	36,254	Positive equity after previous losses, reflecting strengthened financial foundation.
Average Employees	2	Small, stable workforce consistent with micro-entity status.

Vital Signs Interpretation:

• The company’s working capital has turned from negative to positive, a key symptom of improving operational cash flow and liquidity health.
• The increase in fixed assets suggests investment in equipment or property, which could underpin future revenue growth.
• The appearance of long-term creditors (debt) introduces financial leverage; while this can fuel growth, it also adds risk if cash flows do not remain strong.
• The net assets shift from negative to positive signals recovery from prior financial strain, akin to a patient emerging from a critical condition to a stable state.

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3. Diagnosis: Financial Condition Assessment

Artisan Joinery Ltd has been on a financial journey from distress towards recovery. Earlier years showed symptoms of financial struggle: negative net assets and working capital deficits indicated cash flow challenges and potentially unsustainable operations. These symptoms were serious "red flags" akin to a patient showing signs of severe depletion.

The latest financial year shows a marked turnaround: a healthy increase in current assets and fixed assets combined with positive net current assets and net equity. This shift suggests the company has stabilized its operations and improved its cash flow management—a sign of "healthy circulation" in business terms.

However, the presence of long-term liabilities introduces a new complexity. This "debt burden" is manageable currently but represents a chronic condition that requires ongoing monitoring. The company must ensure it generates sufficient profits and cash flows to service this debt without compromising operational agility.

The small size and limited number of employees reflect a focused business model, likely with tight operational control but potentially limited scale.

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4. Recommendations: Steps to Improve Financial Wellness

• Cash Flow Management: Maintain rigorous monitoring of cash inflows and outflows to ensure working capital remains positive and able to cover liabilities comfortably. Consider cash flow forecasting as a routine practice.

• Debt Servicing Plan: Develop a clear schedule for servicing long-term debt. Explore refinancing options if interest rates or terms become burdensome.

• Profitability Focus: Aim to increase profitability to build retained earnings, which will strengthen net assets and provide a buffer against future shocks.

• Cost Control: Continue managing operating expenses, particularly with a small team, to preserve margins.

• Asset Utilization: Ensure fixed assets are productive and contribute directly to revenue generation to justify their cost and maintenance.

• Contingency Planning: Prepare for potential downturns by maintaining reserves or access to credit facilities.

• Regular Financial Reviews: Conduct periodic financial health checks akin to medical check-ups to detect early signs of distress and act promptly.

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