CHRIS CHARLES LIFTING SERVICES LIMITED

Executive Summary

Chris Charles Lifting Services Limited shows solid financial health with a growing equity base and improved cash reserves, indicating effective profitability and investment. However, tight working capital and elevated current liabilities signal the need for enhanced liquidity management to maintain smooth operations. With focused cash flow control and asset optimization, the company is poised for sustainable growth.

CHRIS CHARLES LIFTING SERVICES LIMITED - Analysis Report

Company Number: 13255991

Analysis Date: 2025-07-20 13:41 UTC

Financial Health Assessment for Chris Charles Lifting Services Limited

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1. Financial Health Score: B

Explanation:
Chris Charles Lifting Services Limited demonstrates solid financial footing for a young private limited company operating in the specialised construction sector. The company shows positive net assets and shareholders’ funds growth, with a healthy increase in retained earnings. However, the business displays some moderate short-term liquidity pressure, and a relatively high level of current liabilities compared to current assets. While the company is not in distress, some symptoms indicate the need for cautious working capital management. Thus, a B grade reflects good health with room for improvement.

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2. Key Vital Signs:

Metric	Latest (FY 2024)	Interpretation
Share Capital	£100	Nominal share capital, typical for private companies.
Fixed Assets	£52,246	Investment in tangible assets (equipment, vehicles).
Current Assets	£24,388	Includes cash and debtors; reasonable liquid assets.
Cash Balance	£11,902	Healthy cash reserves, improved significantly from prior year.
Debtors	£12,486	Moderate level; implies some credit sales and receivables risk.
Current Liabilities	£27,707	Higher than current assets, indicating tight liquidity.
Net Current Assets	-£3,319 (Current Assets minus Current Liabilities)	Negative working capital if calculated directly, though reported net current assets £10,669 may be after adjustments (note discrepancy below).
Net Assets	£25,282	Positive and nearly doubled compared to prior year; strong equity base.
Profit & Loss Reserve	£25,182 (Retained Earnings)	Indicates accumulated profits, positive earnings history.
Deferred Tax Liability	£9,926	Non-cash timing difference, manageable but worth monitoring.

Note:
The reported net current assets figure in the accounts (£10,669) differs from a simple subtraction (£24,388 - £27,707 = -£3,319). This suggests that some creditors may be classified beyond one year or other adjustments exist. The company also shows amounts falling due after more than one year (£27,707 in 2024), indicating some liabilities are longer term. Careful review of creditor classifications is recommended.

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3. Diagnosis: Business Financial Health Overview

• Balance Sheet Strength:
  The company’s balance sheet shows a firm foundation with positive net assets of £25,282, more than doubling from the previous year (£11,471). This signals growing shareholder equity and accumulated profits. The tangible fixed assets are substantial for a company of this size, reflecting investment in plant, machinery, and vehicles necessary for lifting services.

• Liquidity (Cash Flow) Status:
  Cash reserves improved markedly from £3,009 in 2023 to £11,902 in 2024, a strong sign of improved cash flow management or timing of receipts. However, current liabilities remain high at £27,707, which may pressure day-to-day liquidity. The company needs to ensure timely collection of debtors (£12,486) and manage payables to maintain a “healthy cash flow” — the equivalent of a stable pulse in financial terms.

• Working Capital:
  The working capital position is a key “vital sign” for short-term financial health. A positive net current asset position usually indicates that the company can cover its short-term obligations. While the accounts report net current assets of £10,669, a direct look at current assets and liabilities suggests a tighter position. This discrepancy could be due to classification of some liabilities as longer term. Careful monitoring of working capital is recommended to avoid liquidity “symptoms of distress,” such as delayed payments or cash shortages.

• Profitability and Reserves:
  The company has built up retained earnings (£25,182), which is a positive “energy reserve,” showing profitability and reinvestment of earnings. This profit cushion helps absorb shocks and fund growth.

• Company Age and Size:
  Incorporated in 2021 and classified as a small company, Chris Charles Lifting Services Limited is still in early growth stages. The financials show typical capital investment and scaling of operations.

• Control and Governance:
  The sole director and 75-100% shareholder, Mr Christopher Charles, holds full control over the company, simplifying decision-making but also concentrating risk and responsibility.

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4. Recommendations: Path to Improved Financial Wellness

1. Enhance Working Capital Management:

   • Conduct detailed cash flow forecasting to ensure ongoing liquidity.
   • Implement stricter credit control to reduce debtor days and improve cash inflow timing.
   • Negotiate longer payment terms with suppliers where possible to better align outflows.

2. Optimize Asset Utilization:

   • Review the fixed asset base regularly to ensure assets are productive and not over-invested in machinery or vehicles that do not contribute to revenue.
   • Consider asset disposals or leasing alternatives if capital tie-up is excessive.

3. Strengthen Financial Reporting and Analysis:

   • Maintain clear separation and classification of current vs. long-term liabilities for accurate working capital assessment.
   • Monitor deferred tax liabilities and seek tax planning advice to minimize tax burden.

4. Plan for Growth and Capital Needs:

   • With a strong equity base, explore opportunities for business expansion or diversification cautiously, ensuring that capital investments are supported by projected cash flows.
   • Consider external financing only if it improves operational capacity without endangering liquidity.

5. Maintain Governance and Compliance:

   • Ensure timely filing of accounts and confirmation statements to avoid penalties.
   • Keep abreast of regulatory changes affecting the construction sector.

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Medical Analogy Summary:
Chris Charles Lifting Services Limited is like a young adult with a strong skeleton (equity and assets) and a steady heartbeat (improving cash reserves), but with a slightly labored breathing (tight working capital) that requires careful management. With attentive care focused on managing short-term liquidity and optimizing asset use, the company is well-positioned to thrive and grow stronger.

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