Company Number: 13290926

Analysis Date: 2025-07-20 14:47 UTC

Financial Health Assessment Report
Company: CONCEPT TILES AND CONSTRUCTION LTD
Assessment Date: Based on accounts to 31 March 2024

---

1. Financial Health Score: B

Explanation:
The company shows a solid improvement in net assets and working capital over the last two years, indicating a strengthening financial position. It operates within the micro-entity category, which limits complexity but also restricts the scale. The absence of long-term liabilities and positive net current assets reflect a generally healthy balance sheet. However, limited share capital and modest absolute cash and asset values suggest some caution is warranted as the business grows.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£13,806	Healthy short-term asset base, increased from £3,506 in 2023 – good liquidity growth.
Current Liabilities	£1,624	Low short-term debts relative to assets, manageable obligations.
Net Current Assets (Working Capital)	£12,182	Strong positive working capital, indicates ability to cover short-term debts comfortably.
Net Assets (Equity)	£12,182	Positive net worth, increasing from £3,122 in 2023 – signals growth and retained earnings.
Share Capital	£1.00	Minimal capital investment; equity growth driven by retained earnings/profits.
Average Number of Employees	4	Small team consistent with micro-entity status; manageable overheads.

Additional Observations:

• The company is active and not in liquidation or administration.
• No overdue filings, indicating good compliance hygiene.
• Director and PSC information indicates clear control and ownership structure.
• Industry: Construction of domestic buildings – a sector with cyclical demand, so liquidity management is important.

---

3. Diagnosis: Financial Health Overview

The company’s balance sheet shows symptoms of financial robustness for a micro-entity: steadily growing net assets and a healthy liquidity position (working capital). The increase in current assets, relative to liabilities, points to improved operational cash flow or asset management. The business appears to be free from immediate financial distress—there are no signs of excessive debt or negative equity.

However, the minimal share capital (£1.00) and relatively small absolute figures imply the business is still in an early growth phase or maintaining a lean structure. This can be likened to a patient who is recovering well but still building muscle—financially stable but needing to build reserves to withstand shocks or fund expansion.

No audit requirement due to micro-entity exemption reduces overhead but also means less external financial scrutiny, so internal controls should remain diligent.

---

4. Recommendations: Steps to Enhance Financial Wellness

• Strengthen Capital Base: Consider increasing share capital or securing additional equity investment to bolster financial resilience and fund growth projects.
• Maintain Healthy Cash Flow: Continue to monitor and optimize accounts receivable and payable terms to keep working capital positive and cash flow steady.
• Plan for Cyclical Demand: Given the construction sector’s sensitivity to economic cycles, build cash reserves during profitable periods to buffer downturns.
• Improve Financial Reporting: Even though exempt, adopting some best practices in financial transparency and forecasting will aid decision-making and stakeholder confidence.
• Review Cost Structure: With a small team and limited liabilities, ensure expenses are well controlled to protect margins.
• Monitor Director & Control Risks: Keep governance clear and compliant, especially given concentrated ownership, to maintain trust and operational stability.

---