FIX A BOILER LIMITED

Executive Summary

FIX A BOILER LIMITED shows positive financial health as a micro-sized entity with improving liquidity, profitability, and equity since inception. The financial "vital signs" reflect a well-managed business with no immediate distress symptoms. Continued focus on cash flow management and growth of reserves will support a stable and sustainable future outlook.

FIX A BOILER LIMITED - Analysis Report

Company Number: 13745482

Analysis Date: 2025-07-29 12:41 UTC

Financial Health Assessment for FIX A BOILER LIMITED

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1. Financial Health Score: B

Explanation:
FIX A BOILER LIMITED demonstrates a sound and improving financial position for a young, micro-sized company in the repair services industry. The company has maintained positive net current assets and net assets, with a growing cash balance and retained earnings, indicating good liquidity and profitability trends. However, the absolute scale of financial resources is modest, reflecting the company’s micro business size, and cautious cash flow management is essential. The absence of audit and limited disclosure typical of micro entities restricts deeper diagnostic insights.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Cash at Bank and in Hand	3,458	Healthy increase from prior years, indicating improved liquidity and cash management.
Current Liabilities	1,197	Low short-term obligations relative to cash and assets, manageable working capital needs.
Net Current Assets	2,261	Positive working capital supports day-to-day operations without liquidity stress.
Net Assets / Shareholders Funds	2,261	Growing equity base signals retained profits and financial stability.
Profit and Loss Reserve	2,161	Accumulated earnings confirm profitability since inception, a good symptom of business health.
Average Number of Employees	2	Modest staffing consistent with micro business status, manageable overhead.

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3. Diagnosis

Overall Financial Condition:
FIX A BOILER LIMITED is like a young patient showing good signs of vitality and growth. The company has steadily increased its cash reserves and equity base over three years, reflecting profitability and prudent financial management. The current liabilities remain low, and net current assets are comfortably positive, indicating no immediate liquidity distress or cash flow constraints.

The company operates within the micro-size threshold, which explains the relatively small absolute figures. The increase in cash and retained earnings is a healthy symptom, showing the business is generating and retaining profits rather than relying on external financing.

The director’s loan from the prior year has been cleared, removing a potential short-term liability and simplifying the balance sheet. The company’s exemption from audit is consistent with its size but means less external verification.

Potential Warning Signs:

• Limited scale of financial resources means the company could be vulnerable to sudden market shocks or unexpected expenses.
• Cash reserves, though improving, remain modest (£3,458), so cash flow monitoring must continue vigilantly.
• No fixed assets reported, which may suggest reliance on outsourced or leased equipment—this can limit asset-backed borrowing capacity.

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4. Recommendations

• Maintain Strong Cash Flow Management: Continue to monitor inflows and outflows closely. Aim to build a cash buffer to cover at least 3 months of operating expenses to safeguard against seasonal fluctuations or unexpected costs.

• Build Reserves and Profitability: Seek to increase retained earnings through maintaining or improving profitability. This will strengthen the equity base and provide funds for potential growth or investment.

• Consider Asset Acquisition: If feasible, acquiring essential fixed assets may improve operational efficiency and create collateral for future financing needs, improving business resilience.

• Prepare for Scaling: As the company grows, anticipate the need for audited accounts and enhanced financial controls. Early preparation will ease transition and support credibility with lenders or investors.

• Risk Management: Ensure adequate insurance and contingency planning to mitigate risks inherent in repair services, such as liability claims or equipment failure.

• Director and Compliance Duties: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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