FINESSE FIT OUT LTD

Executive Summary

Finesse Fit Out Ltd demonstrates strong early financial health with excellent working capital and positive net assets, signaling a stable foundation for growth. Attention to tighter debtor management and prudent handling of longer-term liabilities will be critical to sustaining liquidity and financial wellness. With careful planning, the company is well-positioned to expand its operations in the commercial construction sector.

FINESSE FIT OUT LTD - Analysis Report

Company Number: 14787461

Analysis Date: 2025-07-20 17:36 UTC

Financial Health Assessment for Finesse Fit Out Ltd as at 30 April 2024

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1. Financial Health Score: B

Explanation:
Finesse Fit Out Ltd exhibits solid early-stage financial health with a strong liquidity position and positive net assets. The company is newly incorporated and has built a healthy working capital base, indicating operational strength. However, modest fixed assets and some medium-term liabilities suggest caution and room for improvement as the business matures.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	11,734	Reflects investment in tangible assets (motor vehicles). Reasonable for a start-up stage.
Current Assets	111,981	Healthy short-term resources, primarily debtors and cash.
Cash	15,223	Modest cash reserves indicating liquidity but slightly reliant on receivables collection.
Debtors	96,758	Significant trade and other debtors; careful management needed to ensure timely collection.
Current Liabilities	18,648	Short-term obligations are well covered by current assets, resulting in strong working capital.
Net Current Assets	93,333	Strong positive working capital, a vital sign of good short-term financial health.
Creditors >1 Year (Long-term)	39,599	Medium-term liabilities present; must monitor repayment schedules carefully.
Net Assets	65,468	Positive equity base showing the company is solvent and financially stable.
Share Capital	1	Minimal share capital, typical for a new private limited company.
Number of Employees	1	Small operation, likely owner-managed (director is sole employee).

Interpretation:

• The company shows "healthy cash flow" signs through positive net current assets, indicating it can cover its short-term debts comfortably.
• "Symptoms of distress" are minimal; however, reliance on debtors (customers' unpaid invoices) is high, which could affect liquidity if payments are delayed.
• The presence of long-term creditors requires monitoring to avoid potential strain on future cash flows.

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3. Diagnosis

Finesse Fit Out Ltd is in the early stages of its lifecycle, showing a sound financial constitution with strong working capital and positive net assets. The company’s balance sheet suggests it is solvent and liquid, with enough short-term assets to meet immediate liabilities comfortably. The singular director, who is also the sole employee, has controlled a moderate level of debtors, which is typical for a construction business awaiting payment on contracts.

The fixed asset base is modest, reflecting a lean operating model consistent with a start-up or micro-business. The outstanding long-term creditors indicate some financing or supplier credit has been extended beyond one year, which is manageable but requires prudent cash flow planning.

Overall, the financial "vitals" indicate a stable, solvent business with good potential for growth, provided the company maintains control over receivables and manages longer-term obligations carefully.

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4. Recommendations

To improve financial wellness and sustain growth, Finesse Fit Out Ltd should consider the following:

1. Enhance Cash Reserves:
   Increase cash holdings to reduce reliance on debtor collections and improve liquidity cushion. Consider negotiating better payment terms with customers to accelerate cash inflows.

2. Tighten Debtor Management:
   Implement rigorous credit control measures and regular follow-up on outstanding invoices to reduce debtor days and avoid cash flow bottlenecks.

3. Plan for Long-Term Liabilities:
   Develop a schedule to manage and repay long-term creditors to prevent future liquidity stress.

4. Build Capital Base:
   Consider increasing share capital or retained earnings reinvestment to strengthen equity and support asset acquisition for business expansion.

5. Monitor Operating Costs:
   As a one-person operation currently, maintain tight control over overheads and operating expenses to preserve profitability as the business scales.

6. Prepare for Growth:
   Invest in marketing and client acquisition to diversify revenue streams and reduce over-dependence on a few large debtors.

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