COTSWOLD EDGE BUILDING SERVICES LTD

Executive Summary

Cotswold Edge Building Services Ltd exhibits a stable and improving financial condition with solid growth in net assets and healthy liquidity. The company operates efficiently as a small-scale entity with positive working capital, though limited investment in fixed assets and workforce size may constrain future growth. With strategic asset management and operational scaling, the company is well-positioned for continued financial wellness.

COTSWOLD EDGE BUILDING SERVICES LTD - Analysis Report

Company Number: 13137676

Analysis Date: 2025-07-29 16:41 UTC

Financial Health Assessment: COTSWOLD EDGE BUILDING SERVICES LTD

---

1. Financial Health Score: B

Explanation:
The company demonstrates solid growth in net assets and maintains positive working capital, indicating a generally healthy financial condition. However, the micro-entity status and relatively low fixed asset base point to a small scale of operations with limited financial robustness. The score reflects a stable but still developing financial health profile, with room for strengthening liquidity and asset management.

---

2. Key Vital Signs

Metric	Value (2024)	Interpretation
Net Assets	£30,377	Increased significantly from £10,070 in 2023, indicating growth in equity and retained earnings. Healthy sign of capital accumulation.
Working Capital (Net Current Assets)	£24,412	Strong positive working capital, suggesting the company can comfortably meet short-term obligations. Healthy cash flow indication.
Fixed Assets	£5,965	Modest level of fixed assets, typical for a micro-entity in construction, reflecting limited investment in long-term assets.
Share Capital	£100	Very low share capital, common in micro-entities, indicating limited initial equity injection.
Average Number of Employees	1	Sole director-operated business, implying low overheads but potential capacity constraints.
Overdue Filings	None	Compliance with filing deadlines, indicating good administrative health and governance.

---

3. Diagnosis: Financial Symptoms and Business Health

• Positive Symptoms:
  The company shows a strong increase in net assets by over 200% within a 1.5-year extended accounting period, which suggests profitable operations or capital injections. The working capital has increased substantially, indicating liquidity is robust and the company can cover its short-term debts without stress. The absence of overdue filings or governance issues signals good management discipline.

• Areas for Attention (Mild Symptoms):
  Fixed assets have decreased from £8,978 (2023) to £5,965 (2024), which may reflect depreciation or asset disposals. While not alarming, it suggests the company is not heavily investing in long-term physical assets, potentially limiting capacity expansion. The company operates with only one employee (the director), which may restrict growth potential or operational scalability.

• Operational Scale:
  As a micro-entity in the construction of domestic buildings, the scale is understandably small. This limits financial complexity but also financial cushioning in case of downturns.

---

4. Recommendations: Steps to Improve Financial Wellness

1. Enhance Asset Management:
   Consider strategic investment in fixed assets or tools that can improve operational efficiency and capacity, balancing between maintaining liquidity and supporting growth.

2. Build Cash Reserves:
   Maintain or increase working capital buffers to safeguard against unexpected expenses or seasonal cash flow fluctuations typical in construction.

3. Plan for Growth & Staffing:
   Evaluate the need for additional skilled labor or subcontractors to expand project capacity, which could improve revenue streams and diversify operational risk.

4. Monitor Profitability Closely:
   Although the company shows net asset growth, detailed profit and loss data was not filed publicly. Implement robust internal financial tracking to ensure sustained profitability.

5. Maintain Compliance & Governance:
   Continue timely filing of accounts and confirmation statements to avoid penalties and maintain creditor confidence.

---