COAST, TOWN & COUNTRY WINDOWS LIMITED

Executive Summary

COAST, TOWN & COUNTRY WINDOWS LIMITED is experiencing severe liquidity and solvency challenges evidenced by negative working capital and a sharp decline into net liabilities. Reliance on director loans underlines a fragile financial condition requiring urgent cash flow management, cost control, and capital restructuring to restore stability and viability.

COAST, TOWN & COUNTRY WINDOWS LIMITED - Analysis Report

Company Number: 07556983

Analysis Date: 2025-10-07 05:16 UTC

Financial Health Assessment of COAST, TOWN & COUNTRY WINDOWS LIMITED

---

1. Financial Health Score: D (Distressed)

Explanation:
The company exhibits several worrying “vital signs” that indicate financial distress. Persistent negative net current assets and a sharp deterioration in net assets, plunging far below zero in the latest year, reflect liquidity and solvency issues. Although still active, these symptoms suggest a fragile financial condition requiring urgent remedial action.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	51,831	58,233	Lower than the previous year; shrinking short-term resources
Cash	10,108	16,183	Reduced cash reserves; "weak pulse" in cash flow
Debtors	33,723	34,450	Slight decrease; moderate receivables but overdue collections may risk liquidity
Current Liabilities	106,658	69,777	Significantly increased; growing short-term debts could "overload the heart" of finances
Net Current Assets	(54,827)	(11,544)	Negative working capital; "breathing difficulties" in meeting short-term obligations
Net Assets (Shareholders' Funds)	(47,826)	9	Turned deeply negative; "organ failure" signal of insolvency risk
Loans from Director	36,318 (owed)	9,831 (owed)	Reliance on director’s loan to maintain liquidity; lifeline but not sustainable long-term

---

3. Diagnosis

The company is showing “symptoms of distress” primarily via liquidity and solvency strains. Negative net current assets indicate working capital deficiency, which means the company cannot cover its short-term debts with current assets. This puts the company at risk of defaulting on payments.

The plunge in net assets from a positive £9 to a negative £47,826 reveals losses have accumulated, eroding shareholder equity. The director’s loan has increased nearly fourfold, indicating reliance on insider financing to keep the business afloat — this can be both a symptom and a critical treatment to sustain operations but is not a substitute for profitable business activity.

Fixed assets are modest and being depreciated, providing limited collateral. Stock and debtors have remained fairly level, but rising current liabilities and diminishing cash suggest operational strain and tightening credit conditions.

The company’s going concern note signals dependency on director support due to current losses. Without turnaround, “the prognosis” is poor, with continued risk of insolvency if the company cannot restore profitability and reduce liabilities.

---

4. Recommendations

• Immediate Cash Flow Management:
  Conduct a detailed cash flow forecast to prioritize paying critical creditors and avoid overdue accounts. Explore short-term financing options beyond director loans to diversify risk.

• Working Capital Improvement:
  Negotiate better payment terms with suppliers and accelerate debtor collections using incentives or factoring solutions to improve net current assets and liquidity.

• Cost Reduction and Profitability Review:
  Assess operating costs rigorously to cut unnecessary expenses. Review pricing, products, and contracts to restore profitable margins.

• Capital Structure Restructuring:
  Consider equity injection or formal debt restructuring with lenders. Director loans are currently a critical “life support,” but more sustainable financing is needed.

• Strategic Business Review:
  Evaluate market position and business model viability. If prospects look untenable, prepare contingency plans including formal insolvency procedures to mitigate stakeholder losses.

• Transparency and Reporting:
  Maintain timely financial reporting and communicate with creditors about plans to restore health, preserving trust and creditworthiness.

---

Medical Analogy Summary

The company’s financial “vital signs” show a failing cardiovascular system: cash flow is weak, debts are rising uncontrollably, and equity has suffered irreversible damage. The company is currently in a state of financial shock, relying heavily on “emergency resuscitation” through director loans. Without aggressive intervention (“critical care”), it faces the risk of “systemic failure” (insolvency).

---