Company Number: 15257642

Analysis Date: 2025-07-20 17:55 UTC

Financial Health Assessment for Glastech Limited (as of 30 November 2024)

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1. Financial Health Score: B

Explanation:
Glastech Limited shows a generally sound financial position for a recently incorporated company (incorporated November 2023). The company demonstrates positive net assets and working capital, indicating a stable financial "pulse." However, the relatively high current liabilities compared to current assets and the presence of provisions suggest some caution, preventing a top-tier grade.

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2. Key Vital Signs (Core Financial Metrics):

Metric	Value (£)	Interpretation
Fixed Assets	11,812	Tangible assets (motor vehicles) reflect initial investment in operational capacity.
Current Assets	37,625	Healthy level of liquid assets, notably cash (£30,152), indicating good short-term liquidity.
Current Liabilities	33,467	Substantial short-term obligations; careful monitoring needed to avoid liquidity strain.
Net Current Assets	4,158	Positive working capital, meaning the company can cover short-term debts comfortably.
Total Assets less CL	15,970	Indicates the company’s assets exceeding current debts, a positive sign of financial stability.
Provisions for liabilities	2,244	Company reserves funds for known obligations, showing prudent financial management.
Net Assets / Shareholders' Funds	13,726	Positive equity base, evidencing that the company’s assets exceed total liabilities.
Profit and Loss Account	13,626	Retained earnings reflecting profitability since incorporation.
Cash Balance	30,152	Strong cash position supports operational resilience and flexibility.

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3. Diagnosis: Financial "Health" Overview

Glastech Limited currently exhibits the vital signs of a financially "fit" young company. The positive net current assets indicate a healthy cash flow situation, much like a patient with a strong heartbeat and stable blood pressure. The company has invested in motor vehicles, suggesting operational readiness in the glazing sector.

The high cash reserves relative to current liabilities is a reassuring symptom, showing the company can meet immediate financial demands without distress. However, the current liabilities are significant and include director loans (£4,348), tax liabilities (£5,654), and other creditors, which require careful management to avoid future liquidity "stress."

Provisions of £2,244 indicate the company is anticipating some liabilities, which is a prudent approach to financial risk management. The issuance of share capital and retained earnings reflect good initial financing and early profitability, although dividends paid (£20,000) suggest distributions have been made despite the company's infancy — a factor to monitor for sustainability.

Overall, Glastech Limited's financial condition reflects a stable and carefully managed start-up, with no immediate signs of financial distress or imbalance.

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4. Recommendations (Prescription for Financial Wellness)

• Maintain Strong Cash Flow Monitoring: Continue to monitor and forecast cash flow closely, ensuring cash reserves remain sufficient to cover current liabilities and unexpected expenses.

• Manage Payables Prudently: Keep a close eye on creditor payment terms and tax obligations to avoid any overdue liabilities that could cause financial "symptoms" such as penalties or interest charges.

• Evaluate Dividend Policy: While dividends have been paid, ensure future distributions do not impair working capital or restrict reinvestment needed for growth.

• Review Provisions Regularly: Regularly reassess the adequacy of provisions for liabilities to avoid surprises that could impact profitability or cash flow.

• Plan for Asset Utilisation: Ensure the fixed assets (motor vehicles) are optimally used to generate revenue and justify the capital expenditure.

• Build Reserves and Equity: Aim to build retained earnings through profitable trading to strengthen the equity base and provide a buffer against future financial shocks.

• Prepare for Growth: As the company grows beyond micro or small thresholds, prepare for more complex financial reporting and consider professional advice on tax planning and funding.

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