BLISS INDUSTRIAL ROOFING & CLADDING LIMITED

Executive Summary

BLISS INDUSTRIAL ROOFING & CLADDING LIMITED has demonstrated positive financial recovery from its initial negative net assets position, showing increased capital investment and equity strength. However, the company faces liquidity challenges due to negative working capital, signaling the need for improved cash flow management. With focused attention on cash reserves and operational efficiency, the company’s financial outlook is cautiously optimistic.

BLISS INDUSTRIAL ROOFING & CLADDING LIMITED - Analysis Report

Company Number: 14615816

Analysis Date: 2025-07-29 17:24 UTC

Financial Health Assessment for BLISS INDUSTRIAL ROOFING & CLADDING LIMITED

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1. Financial Health Score: B-

Explanation:
BLISS INDUSTRIAL ROOFING & CLADDING LIMITED shows a positive turnaround with net assets moving from negative (£3,817) in 2024 to positive (£10,157) in 2025, indicating improvement in financial stability. However, the company has a significant level of current liabilities compared to current assets, signaling some liquidity pressure. Given it is a micro-entity in its early stage (incorporated in 2023), this score reflects cautious optimism with a need for continued cash flow monitoring and working capital management.

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2. Key Vital Signs (Core Financial Metrics and Interpretation):

Metric	2024 Value (£)	2025 Value (£)	Interpretation
Fixed Assets	17,447	41,799	Investment in long-term assets increased, showing capital expenditure for growth.
Current Assets	785	12,903	Significant increase in liquid or short-term assets, improving liquidity potential.
Current Liabilities	22,049	44,545	Current debts have doubled, creating pressure on short-term obligations.
Net Current Assets (Working Capital)	(21,264)	(31,642)	Negative net current assets indicate working capital deficiency (“symptom of distress”), meaning the company may struggle to cover short-term debts with current assets.
Total Net Assets	(3,817)	10,157	Shift from negative to positive net worth is a “sign of recovery,” indicating improved solvency.
Shareholders’ Funds	(3,817)	10,157	Equity injection or retained earnings have strengthened the balance sheet.

Additional Notes:

• The company has only 1 employee, indicating a very lean operational structure typical of a micro-entity startup.
• No audit required due to micro-entity exemption, so figures are less scrutinized but still reliable for trend analysis.
• Directors are actively involved, with significant control split between two individuals.

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3. Diagnosis (What the Financial Data Reveals About Business Health):

• Early-stage Financial Recovery: The company started with negative net assets but has improved its balance sheet within two years, suggesting initial financial stress has been managed effectively.
• Liquidity Concerns: The persistent negative working capital means the firm faces “symptoms of liquidity distress.” The company may experience difficulty meeting short-term obligations without further cash inflows or refinancing.
• Asset Growth vs. Liability Growth: While fixed assets have increased substantially (capital investment), current liabilities have also increased sharply, indicating the company may be financing growth through short-term borrowing or trade credit. This can be risky without corresponding revenue growth.
• Limited Operational Scale: With just one employee and micro-entity status, the company is likely in a startup or small project phase with limited operational complexity. This means financial flexibility is crucial to survive early hurdles.
• Governance and Control: The clear ownership and control structure with two directors owning all shares suggests strong governance alignment but also concentration risk.

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4. Recommendations (Specific Actions to Improve Financial Wellness):

• Improve Working Capital Management:

  • Tighten credit control and accelerate debtor collections to boost current assets.
  • Negotiate longer payment terms with suppliers to reduce current liabilities pressure.
  • Consider short-term financing options (e.g., invoice financing) to smooth cash flow cycles.

• Monitor Capital Investment:

  • Ensure that fixed asset additions are aligned with realistic revenue growth projections to avoid overextension.
  • Review asset utilization regularly to confirm investments contribute to profitability.

• Build Cash Reserves:

  • Aim to build a cash buffer to cover at least 3 months of operating expenses to manage liquidity risk.

• Financial Reporting and Forecasting:

  • Implement regular cash flow forecasting to anticipate liquidity issues before they become critical.
  • Even though audit is exempt, consider voluntary internal reviews to enhance financial oversight.

• Strategic Growth Planning:

  • Focus on securing contracts or projects that ensure steady revenue streams to support working capital needs.
  • Maintain lean operations to control fixed overheads until financial stability is more robust.

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Medical Analogy Summary:

BLISS INDUSTRIAL ROOFING & CLADDING LIMITED appears to be in a recovery phase from an initial “financial illness” characterized by negative net assets and working capital deficiency. The company shows signs of healing with improved net worth and asset base. However, the persistent “symptoms of distress” in liquidity suggest the need for careful “treatment” via cash flow management and operational prudence to avoid relapse into financial strain. With attentive “health monitoring” and strategic management, the prognosis can improve to a stable and financially “healthy” state.

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