BESPOKE TILING SOLUTIONS LTD

Executive Summary

BESPOKE TILING SOLUTIONS LTD is currently experiencing significant financial strain, evidenced by a sharp decline in working capital and net assets. While the company remains operational, the increased current liabilities and diminished equity signal liquidity and solvency risks. Immediate actions to improve cash flow, reduce liabilities, and strengthen equity are critical for restoring financial health and ensuring sustainable operations.

BESPOKE TILING SOLUTIONS LTD - Analysis Report

Company Number: 13259818

Analysis Date: 2025-07-20 17:58 UTC

Financial Health Assessment for BESPOKE TILING SOLUTIONS LTD

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1. Financial Health Score: D

Explanation:
The company shows symptoms of financial distress, particularly in its most recent financial year, with a severe drop in net current assets and net assets. While it remains active and solvent, the healthy cash flow and working capital seen previously have deteriorated significantly, requiring urgent attention.

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2. Key Vital Signs

Metric	FY 2024 (£)	FY 2023 (£)	Interpretation
Current Assets	43,328	37,697	Adequate liquidity, slight increase
Current Liabilities	42,508	16,539	Sharp increase, pressure on cash flow
Net Current Assets (Working Capital)	820	21,158	Near zero, alarming reduction
Total Net Assets	820	5,158	Very low equity base, declining
Share Capital	100	100	Minimal capital invested
Number of Employees	1	1	Micro-entity with minimal staff

Interpretation of Vital Signs:

• Working Capital Collapse: Net current assets dropped from £21,158 to just £820, indicating the company’s short-term financial buffer is nearly depleted. This is akin to a patient whose "healthy cash flow" has become "labored breathing."
• Rising Current Liabilities: Current liabilities surged significantly, which can be a sign of building payables or short-term debts that may strain liquidity.
• Equity Shrinkage: Net assets have fallen substantially, suggesting accumulated losses or withdrawals exceeding profits, weakening the financial "immune system."
• Minimal Share Capital: The company started with a very small capital base (£100), which limits its capacity to absorb shocks or invest in growth.

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3. Diagnosis

The company exhibits symptoms of financial distress primarily related to liquidity and solvency. The drastic reduction in net current assets and net assets suggests that the business is operating on very tight margins with little buffer for unexpected expenses or downturns. Although the current assets increased slightly, the liabilities have grown disproportionately, creating a dangerous imbalance.

The consistent presence of only one employee and classification as a micro-entity indicates a very small operation, which may face challenges scaling or absorbing financial shocks. The large increase in current liabilities relative to current assets signals potential cash flow management issues or delayed payments to suppliers and creditors.

The director, Mr. Daniel Slaney, holds full control, which means decision-making is centralized but also that financial risks and recovery efforts depend heavily on his management.

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4. Recommendations

To improve financial wellness and restore a healthier financial state, the following actions are advisable:

• Improve Cash Flow Management: Focus on accelerating receivables, negotiating better payment terms with suppliers, and closely monitoring payables to avoid liquidity crises.
• Reduce Current Liabilities: Explore options to refinance short-term debts into longer-term obligations to ease immediate pressure. Consider settlements or restructuring with creditors.
• Build Equity Base: Consider injecting additional capital or retaining profits to strengthen shareholders’ funds and provide a financial cushion.
• Cost Control: Review operating expenses to identify and cut unnecessary costs without compromising service quality.
• Financial Forecasting: Develop regular cash flow forecasts and scenario planning to anticipate financial stresses early.
• Seek Professional Advice: Engage an accountant or financial advisor to assist with restructuring plans and improve financial reporting and controls.
• Growth Strategy: Given the micro-entity status, explore new markets or services that can increase revenues without large capital outlay.

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