CUBE HOUSING SOLUTIONS LTD

Executive Summary

Cube Housing Solutions Ltd presents a financially stable profile characterized by strong liquidity and growing equity. The company's financial "vital signs" indicate healthy working capital and improved creditor management, although the decline in fixed assets warrants attention. With prudent management of assets and continued focus on cash flow and debt structure, the company is well-positioned for steady growth.

CUBE HOUSING SOLUTIONS LTD - Analysis Report

Company Number: 12836793

Analysis Date: 2025-07-20 15:19 UTC

Financial Health Assessment Report for Cube Housing Solutions Ltd

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1. Financial Health Score: B

Explanation:
Cube Housing Solutions Ltd demonstrates a solid financial foundation typical for a micro-entity. The company shows consistent growth in net assets and shareholder funds over recent years, healthy working capital, and positive net current assets. However, there are signs of some asset reduction and creditor restructuring that warrant monitoring. Overall, the company is financially stable but with room for improvement in asset management and long-term creditor obligations.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	6,402	12,441	Decrease indicates asset disposals or depreciation outpacing additions.
Current Assets	59,831	61,345	Healthy level, mainly cash or receivables; stable liquidity base.
Current Liabilities	14,387	25,000	Significant reduction, improving short-term debt position.
Net Current Assets	53,378	53,991	Strong positive working capital; "healthy cash flow" potential.
Net Assets	36,013	24,815	Growth in equity base shows retained earnings and capital strength.
Shareholders' Funds	36,013	24,815	Mirrors net assets; equity growth supports financial resilience.
Average Number of Employees	2	2	Small workforce consistent with micro-category; lean operation.

Interpretation:

• The company has a healthy liquidity position indicated by strong net current assets, meaning it can comfortably meet short-term obligations without stress.
• A drop in fixed assets could signal asset sales or operational downsizing; requires further inquiry to assess impact on productive capacity.
• The significant decrease in current liabilities and long-term creditors (from £25,000 to £14,387) suggests active debt repayment or restructuring, a positive symptom of financial management.
• The improvement in net assets and shareholder funds is a vital sign of retained profitability or capital injection, which improves solvency.

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3. Diagnosis

The company’s financial "vital signs" suggest it is in a stable and improving condition. The positive working capital and growth in net assets indicate it is not experiencing liquidity distress or solvency risks typical of financial "ailments" such as over-leverage or cash crunch.

However, the decrease in fixed assets might hint at a strategic pivot, asset disposals, or underinvestment in capital resources, which could affect long-term operational "vitality." The reduction in creditors and accruals is a good sign of improved creditor management but also suggests the company should ensure it maintains enough operational flexibility.

The micro-entity status means limited disclosure, so some "symptoms" like profitability, cash flow statements, and detailed liabilities are not fully visible. The small employee base and modest capital structure fit the profile of a young or niche business.

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4. Recommendations

• Monitor Fixed Asset Management: Investigate the cause of fixed asset decline and assess if reinvestment or asset replacement is needed to sustain or grow operations.
• Maintain Strong Working Capital: Continue to manage current assets and liabilities to preserve liquidity buffers. Avoid overextension of credit terms that may strain cash flow.
• Debt Structure Review: Keep track of creditor terms and long-term obligations. Consider negotiating better terms or refinancing if beneficial.
• Profitability and Cash Flow Tracking: Although not provided, initiate or enhance internal tracking of profit margins and cash inflows/outflows to detect early signs of distress.
• Strategic Growth Planning: With net assets improving, consider plans for growth, whether through additional capital injection, expanding workforce, or diversifying services.
• Compliance and Governance: Maintain timely filing of accounts and confirmation statements to avoid penalties and preserve company reputation.

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