CHESHIRE SASH WINDOWS AND JOINERY LIMITED

Executive Summary

Cheshire Sash Windows and Joinery Limited demonstrates high financial risk due to negative net assets and worsening liquidity metrics. Although regulatory filings are up to date and the business maintains stable operations, solvency concerns and creditor exposure warrant thorough review. Further scrutiny of debt obligations and cash flow is essential to assess the company’s ability to continue as a going concern.

CHESHIRE SASH WINDOWS AND JOINERY LIMITED - Analysis Report

Company Number: 14023350

Analysis Date: 2025-07-20 16:10 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as indicated by a negative net asset position (£-6,294) and a sharp deterioration in net current assets from a positive £1,138 in 2023 to a negative £-3,613 in 2024. This suggests an inability to cover short-term liabilities with current assets. The decline in total assets less current liabilities from £12,060 to £3,669 further signals financial distress.

2. Key Concerns:

• Negative net assets and shareholders’ funds imply the company is insolvent on a balance sheet basis as of the latest accounts.
• Current liabilities nearly 12 times current assets in 2024, indicating liquidity strain and potential cash flow issues.
• Significant increase in long-term creditors (£9,963) relative to total assets, raising questions about debt servicing capacity and creditor relationships.

3. Positive Indicators:

• The company is current with filings and accounts, demonstrating compliance with regulatory requirements.
• Business operations appear stable with no off-balance sheet liabilities disclosed and a consistent employee count (1 employee).
• The director is actively engaged and has control rights, which may facilitate focused management decisions.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term creditors to understand repayment schedules and impact on solvency.
• Review cash flow statements and recent trading performance to assess operational sustainability and working capital management.
• Confirm no undisclosed contingent liabilities or related party transactions that may exacerbate financial risk.
• Evaluate director’s plans for financial restructuring or capital infusion given the deteriorated net asset position.