CFS PLUMBING & HEATING CONTRACTORS LIMITED

Executive Summary

CFS Plumbing & Heating Contractors Limited is a healthy start-up with positive but modest financial metrics indicating early-stage operations and fragile liquidity. The company is solvent and compliant but needs to focus on building cash reserves, strengthening working capital, and driving revenue growth to improve financial resilience and support future expansion.

CFS PLUMBING & HEATING CONTRACTORS LIMITED - Analysis Report

Company Number: 15221915

Analysis Date: 2025-07-29 17:25 UTC

Financial Health Assessment for CFS Plumbing & Heating Contractors Limited

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1. Financial Health Score: C

Explanation:
CFS Plumbing & Heating Contractors Limited is a newly incorporated private limited company (incorporated Oct 2023) operating in plumbing and heating installation. The financial data shows very modest activity with minimal assets and liabilities, indicating an early-stage business with limited financial history. The company demonstrates a positive but small net working capital and positive net assets, which is a good initial sign, but the overall scale and liquidity position suggest it is in an embryonic phase with limited financial cushion. Hence, a grade C reflects a company that is solvent but still developing its financial foundation.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	6,031	Small cash and receivables base; company holds enough liquid assets to cover short-term needs modestly.
Cash	5,911	Healthy cash flow position relative to liabilities; positive cash "pulse".
Debtors	120	Minimal receivables, indicating low sales volume or early-stage operations.
Current Liabilities	5,844	Short-term obligations nearly equal to current assets, suggesting tight liquidity.
Net Current Assets	187	Positive but very small working capital buffer; "blood pressure" of liquidity is low but stable.
Net Assets	187	Company equity is positive, indicating solvency; the "heart" of the balance sheet is stable but fragile.
Share Capital	100	Minimal initial capital, typical for a start-up business.
Profit and Loss Reserve	87	Retained earnings showing modest profit accumulation since inception.

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3. Diagnosis

The financial "symptoms" reflect a start-up company in its initial growth phase. The company has generated some revenue and retained modest profits, shown by the positive P&L reserve of £87. The balance sheet is lightly scaled, with current assets just sufficient to cover short-term liabilities—a sign of fragile but positive liquidity.

The nearly equal current assets and liabilities indicate that the company must carefully manage its cash flow to avoid liquidity stress. The company does not yet have significant fixed assets or long-term financing, reflecting its early stage and capital structure.

There are no signs of financial distress such as negative net assets or overdue filings. The company is compliant with filing deadlines and is active, indicating good governance and regulatory health.

Underlying business health: The company is solvent and operational but still in its infancy with limited financial "muscle." It shows early signs of profitability but must build cash reserves and working capital to sustain growth and absorb potential shocks.

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4. Recommendations

• Strengthen Cash Reserves: Focus on building a stronger cash buffer to improve liquidity and withstand unforeseen expenses or seasonal fluctuations in demand.
• Monitor Working Capital Closely: Keep tight control on receivables and payables to maintain positive working capital and avoid liquidity strain.
• Increase Capital Investment: Consider injecting additional equity or securing affordable financing to fund expansion and asset acquisition for operational scalability.
• Revenue Growth Strategies: Develop sales and marketing initiatives to increase turnover—currently, the company’s financial scale is minimal, limiting economies of scale and profitability.
• Implement Robust Financial Controls: As the company grows, establish routine financial monitoring and forecasting to detect early warning signs of distress.
• Plan for Audit and Compliance: While exempt now, as the company grows it may need audited accounts, so prepare for increased compliance demands.

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