CSS ROOF TILING SPECIALISTS LTD

Executive Summary

CSS Roof Tiling Specialists Ltd is financially healthy with solid working capital and positive net assets, indicating good short-term liquidity and solvency. The company should focus on improving cash reserves and debtor management to strengthen financial resilience as it grows. Timely and comprehensive financial reporting will aid future performance assessment and strategic planning.

CSS ROOF TILING SPECIALISTS LTD - Analysis Report

Company Number: 13559384

Analysis Date: 2025-07-29 18:47 UTC

Financial Health Assessment for CSS ROOF TILING SPECIALISTS LTD

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1. Financial Health Score: B

Explanation:
CSS Roof Tiling Specialists Ltd shows a solid foundation with positive net assets, healthy working capital, and no overdue filings. The company is young (incorporated in 2021) and currently active, with no indications of financial distress. The balance sheet reflects prudent financial management, though limited data on profitability and cash flow dynamics restrict a top-tier rating. Overall, the business demonstrates good early-stage financial health with room to strengthen operational cash flow and asset utilisation.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	3,322	Low capital investment consistent with a small roofing firm; manageable asset base.
Current Assets	26,323	Adequate short-term resources including cash and debtors to cover liabilities.
Cash at Bank	6,937	Reasonable cash buffer indicating liquidity but could be improved for unexpected expenses.
Debtors	19,386	Significant receivables; potential risk if collection is delayed—monitor aging closely.
Current Liabilities	12,891	Short-term obligations manageable relative to current assets.
Net Current Assets (Working Capital)	13,432	Positive working capital shows the company can comfortably meet short-term debts.
Net Assets (Equity)	16,754	Positive net worth confirms the company is solvent and has a buffer against losses.
Director Loan	2,069	Payable on demand but interest-free; a manageable related-party liability.
Employees	2	Small workforce aligns with company size and industry activity.

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3. Diagnosis: Financial Condition Analysis

CSS Roof Tiling Specialists Ltd presents as a "healthy patient" in the early stages of its business lifecycle. The balance sheet shows no signs of financial distress such as negative equity or overleveraging. Positive working capital ("healthy cash flow pulse") indicates the company can meet its short-term obligations comfortably, a key symptom of operational stability.

The presence of a director loan interest-free and payable on demand is common for small businesses and does not currently pose a liquidity threat. The company’s fixed assets are minimal, which is typical for service-based trades like roofing, relying more on labour than heavy equipment.

However, the significant amount of debtors relative to cash may suggest a moderate risk in accounts receivable collection. If clients delay payments, this could strain cash flow ("early warning symptom"). The company should maintain vigilant credit control.

As the company is newly established and only has its first 13-month financial period reported, profitability trends and cash flow patterns are not yet clear. The absence of a filed profit and loss account limits insight into operational profitability and expense management.

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4. Recommendations: Path to Financial Wellness

• Enhance Cash Reserves: Build a larger cash buffer beyond the current £6,937 to safeguard against seasonal fluctuations or unexpected costs. Healthy liquidity is the lifeblood of small businesses.

• Improve Debtor Management: Implement stricter credit controls and timely invoicing to reduce days sales outstanding. Swift conversion of receivables into cash strengthens the "heartbeat" of the business.

• Monitor Director Loan: Although interest-free, consider formalising repayment terms to avoid any liquidity surprises and maintain transparent accounting practices.

• Prepare for Profit & Loss Reporting: Ensure future filings include profit and loss accounts to provide a complete picture of operational performance, enabling better diagnostic insight.

• Plan for Growth: As business activity scales, consider investing in fixed assets or tools that can improve efficiency and service delivery.

• Maintain Compliance: Continue meeting filing deadlines promptly to avoid penalties and maintain a strong regulatory standing.

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