BESPOKE POOLS & LANDSCAPES LTD

Executive Summary

BESPOKE POOLS & LANDSCAPES LTD has made strides in recovering its net asset position but faces serious liquidity challenges due to negative working capital. The company’s financial health is fair but vulnerable, requiring focused management of cash flows and liabilities to avoid distress. Immediate actions to improve working capital and cash forecasting are essential for sustainable growth.

BESPOKE POOLS & LANDSCAPES LTD - Analysis Report

Company Number: 13951445

Analysis Date: 2025-07-20 15:17 UTC

Financial Health Assessment of BESPOKE POOLS & LANDSCAPES LTD

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1. Financial Health Score: C

Explanation:
The company shows signs of early-stage recovery with a small positive net asset position after prior losses but continues to struggle with negative working capital. The overall financial health is fair but fragile, requiring careful management to avoid cash flow stress.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	16,615	7,846	Increase indicates investment in long-term assets, possibly equipment or installation tools.
Current Assets	16,823	3,240	Improved liquid assets but still relatively low compared to liabilities.
Current Liabilities	32,241	14,519	Significant increase, suggesting higher short-term debts or payables.
Net Current Assets (Working Capital)	-15,418	-11,279	Negative working capital ("symptom of distress"), indicating potential liquidity challenges.
Net Assets (Shareholders’ Funds)	1,199	-3,431	Moved from negative to positive net asset, showing slight recovery in overall equity position.
Employee Count	2	N/A	Small workforce consistent with micro-entity status, manageable overhead.

Interpretation of Vital Signs:

• The negative working capital is a key symptom of cash flow strain. Current liabilities exceed current assets by a substantial margin, implying the company may face difficulties meeting short-term obligations without additional financing or improved cash inflows.
• The net assets turning positive is a positive sign, suggesting the company’s long-term solvency is improving, possibly due to retained earnings or revaluation of assets.
• The increase in fixed assets shows reinvestment into the business, which could support future revenue generation but may also weigh on liquidity if not matched by cash inflows.
• The doubling of current liabilities is concerning and could be a red flag for creditor pressure or delayed payments.

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3. Diagnosis

Overall Financial Condition:
BESPOKE POOLS & LANDSCAPES LTD is a young micro-entity operating in construction installation, with two directors/shareholders actively controlling the business. The company has shown a modest recovery from prior net losses, achieving a slightly positive net asset position by the financial year ending March 2024. However, it continues to suffer from negative working capital, a critical symptom indicating potential liquidity challenges and risk of short-term cash flow distress.

The company’s financial “pulse” suggests it is not yet in critical condition but is vulnerable. The sharp increase in current liabilities relative to current assets could lead to difficulties in paying suppliers and meeting other short-term obligations if not addressed promptly. The small employee base and micro-entity status imply low overhead, which is a positive factor for managing expenses.

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4. Recommendations

To improve the financial wellness of BESPOKE POOLS & LANDSCAPES LTD, consider the following actions:

• Improve Working Capital Management:

  • Negotiate extended payment terms with creditors to reduce current liabilities pressure.
  • Accelerate collection of any receivables to boost current assets and available cash.
  • Monitor stock/inventory levels closely to avoid cash being tied up unnecessarily.

• Strengthen Cash Flow Forecasting:

  • Implement regular cash flow projections to anticipate cash shortfalls early and arrange bridging finance if necessary.
  • Maintain a cash buffer to withstand timing mismatches between inflows and outflows.

• Control Fixed Asset Investment:

  • Review capital expenditure plans to ensure asset purchases are essential and aligned with revenue growth. Avoid overextension that worsens liquidity.

• Explore Financing Options:

  • Consider short-term financing such as overdrafts or invoice financing to ease liquidity stress during growth phases.
  • Alternatively, additional equity injections from shareholders might shore up working capital.

• Regular Financial Review:

  • Directors should regularly review updated financial statements and key metrics to detect “symptoms” early and respond swiftly.

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Medical Analogy Summary

BESPOKE POOLS & LANDSCAPES LTD’s financial health resembles a patient recovering from a previous illness (losses) and showing signs of improvement (positive net assets). However, the patient still exhibits symptoms of distress through negative working capital—akin to poor circulation limiting the company’s ability to meet immediate obligations. Without timely intervention to improve liquidity, the company risks a cash flow crisis.

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