FURNISS BUILDING MAINTENANCE LIMITED

Executive Summary

FURNISS BUILDING MAINTENANCE LIMITED exhibits a stable financial foundation typical of a newly formed micro-entity, with positive net assets and healthy working capital. However, limited cash reserves and a single-employee setup indicate early-stage operational risks. Focused actions on building liquidity, cautious expansion, and strategic capital investment will enhance the company’s financial resilience and support sustainable growth.

FURNISS BUILDING MAINTENANCE LIMITED - Analysis Report

Company Number: 14870822

Analysis Date: 2025-07-29 19:35 UTC

Financial Health Assessment for FURNISS BUILDING MAINTENANCE LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates a solid foundation with positive net assets and net current assets, indicating liquidity and solvency on its first-year financials. However, the very small asset base and minimal current assets highlight early-stage vulnerabilities typical of a new micro-entity. With only one employee (the director) and modest fixed assets, the business shows financial stability but limited scale and operational breadth at this stage.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£10,794	Investment in long-term assets is modest but positive, indicating some capital expenditure.
Current Assets	£673	Low level of liquid assets (cash, receivables), suggesting limited short-term liquidity.
Prepayments & Accrued Income	£1,933	Advance payments or income accrued, supporting short-term operations.
Net Current Assets	£2,606	Positive working capital; company can meet short-term obligations comfortably ("healthy cash flow").
Total Assets less Current Liabilities	£13,400	Indicates overall net resources available after short-term debts settled.
Net Assets / Shareholders Funds	£13,400	Positive equity base; the company is solvent with no reported liabilities exceeding assets.
Share Capital	£1.00	Nominal share capital typical for micro-entities; ownership is concentrated.
Employee Count	1 (Director)	Extremely lean operation; potential operational risk due to limited human resource capacity.

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3. Diagnosis: What the Numbers Reveal About Business Health

• Early Stage, Stable Foundation: The company was incorporated in mid-2023, with its first financial year ending May 2024. The balance sheet shows positive net assets and net current assets, which are good "vital signs" indicating the company has not yet experienced distress or liquidity issues.

• Micro-Entity Scale: The business is a micro-entity with minimal fixed and current assets, reflecting a lean capital structure and operational scale. The small size fits the category thresholds and suggests limited operational complexity.

• Healthy Liquidity but Limited Cash Reserves: While net current assets are positive, the very low current assets (£673) imply that cash or receivables are minimal. The presence of prepayments/ accrued income (£1,933) helps working capital but also suggests some cash flow timing issues.

• Concentrated Control and Operations: The director, Mr. Graham Furniss, owns 75-100% of shares and holds all voting rights, implying centralized decision-making and control. The business currently employs only the director, which may limit capacity but also reduces wage liabilities.

• No Audit Requirement & Accounts Compliance: The company benefits from micro-entity reporting exemptions, reducing overhead and compliance costs. The accounts are unaudited but prepared in accordance with FRS 105, ensuring basic financial transparency.

• Industry Focus: The company operates in plumbing, HVAC installation, and construction sectors, which typically require capital for equipment but can be cash flow sensitive. The modest fixed assets suggest initial investment in tools/equipment.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Build Cash Reserves: Aim to increase cash and liquid current assets to buffer against operational variability. Healthy cash flow management will reduce liquidity risk ("symptoms of distress").

• Expand Operational Capacity Carefully: Consider hiring additional skilled staff or subcontractors to enable growth and reduce operational bottlenecks, while monitoring wage cost impact.

• Monitor Working Capital Closely: Maintain positive net current assets to ensure obligations are met promptly. Review debtor collection and creditor payment terms to optimize cash flow.

• Plan Capital Investment Strategically: Gradually increase fixed assets to support business activities without overextending resources. Investment in equipment or vehicles should align with projected workload.

• Prepare for Growth and Compliance: As the company grows beyond micro-entity thresholds, prepare for more comprehensive accounting and audit requirements to maintain financial transparency.

• Governance and Control: Maintain clear documentation and separation of personal and business finances, given the single director structure. Consider advisory support for financial and operational decisions.

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