C K WINDOW SOLUTIONS LIMITED

Executive Summary

C K WINDOW SOLUTIONS LIMITED is financially stable with positive net assets and adequate liquidity, reflecting a healthy financial condition for a micro-entity. However, recent reductions in working capital and long-term liabilities highlight early warning signs that require careful cash flow and debt management. With prudent monitoring and strategic focus on profitability, the company is well-positioned for continued operational health and sustainable growth.

C K WINDOW SOLUTIONS LIMITED - Analysis Report

Company Number: 12757074

Analysis Date: 2025-07-29 18:05 UTC

Financial Health Assessment Report
Company: C K WINDOW SOLUTIONS LIMITED
Assessment Date: Based on accounts to 31 July 2024

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1. Financial Health Score: B

Explanation:
The company demonstrates solid financial footing with positive net assets and shareholders' funds growth over time. Working capital remains positive, indicating the company can cover its short-term liabilities. However, there is a noticeable reduction in net current assets and total assets less current liabilities in the latest year, which signals some emerging cautionary signs. Overall, this is a financially stable micro-entity with good liquidity but with some early symptoms warranting attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	28,887	30,744	Slight reduction in fixed assets; stable investment in long-term resources.
Current Assets	55,034	57,789	Healthy level of liquid and short-term assets, slightly decreased from prior year.
Current Liabilities	23,205	7,836	Significant decrease in short-term creditors, indicating better management of immediate debts.
Net Current Assets	31,829	49,953	Declined but remains positive, showing working capital is sufficient but less robust than before.
Creditors due after 1 year	26,861	48,153	Reduction in long-term liabilities, suggesting repayment or restructuring of debt.
Provisions for liabilities	5,488	5,841	Stable provisions, indicating consistent recognition of potential obligations.
Net Assets / Shareholders Funds	28,367	26,703	Growth in equity signifies accumulated retained earnings and overall positive net worth.
Average Employees	2	2	Small, consistent workforce, typical for a micro-entity.

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3. Diagnosis: Financial Condition Summary

Healthy Cash Flow Indicators:
The company maintains positive net current assets, meaning it has more short-term assets than liabilities — a key sign of liquidity health. This is akin to a patient having strong pulse and stable vital signs.

Symptoms of Emerging Stress:
Despite positive equity growth, the decline in net current assets and total assets less current liabilities (from £80.7k to £60.7k) signals a reduction in the company’s buffer against financial pressure. This could be due to increased operational costs, reduced cash inflows, or repayments of long-term debt as reflected by lower creditors after one year. While not alarming yet, this reduction is a symptom that requires monitoring.

Asset Stability:
Fixed assets remain fairly steady, showing no significant asset sales or impairments — suggesting the company’s core operational base is intact.

Liability Management:
The notable decrease in current liabilities and long-term creditors points to active debt management, which is a positive treatment step for financial health.

Operational Scale:
The company operates with a small, stable team which aligns with its micro-entity status and reduces exposure to high payroll risks.

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4. Recommendations for Financial Wellness Improvement

• Monitor Working Capital Closely: The declining net current assets suggest the company should keep a close eye on cash flow management. Maintain a healthy buffer by accelerating debtor collections and managing inventory and payables efficiently.

• Debt Strategy Review: With long-term liabilities reducing, ensure repayments are sustainable and do not strain operational liquidity. Explore refinancing if needed to maintain a good balance between debt and equity.

• Profitability Focus: While equity has grown, boosting profitability will help replenish working capital and support investment in growth opportunities. Consider pricing strategies, cost control, and expanding service offerings in window cleaning and property letting sectors.

• Contingency Planning: Maintain provisions for liabilities prudently and review them regularly to avoid surprises that could stress finances.

• Future Growth Preparation: Given the company’s micro size, any growth should be carefully planned to avoid overextension. Consider incremental scaling with a focus on maintaining healthy cash flows.

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Medical Analogy Summary:

The company exhibits a healthy cardiovascular system with positive liquidity and growing equity—akin to a strong heart pumping effectively. However, recent reductions in liquidity are like early symptoms of fatigue; while not critical, they signal the need for rest and monitoring. Proactive management of cash flow and debt will help keep the company fit and ready for growth.

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