GLEBE STRUCTURES LTD

Executive Summary

GLEBE STRUCTURES LTD is financially stable with solid asset growth and strong equity, reflecting good overall business health. However, a notable decline in cash and high debtor balances indicate potential liquidity risks that require improved cash flow management. Addressing these symptoms will strengthen the company's short-term resilience and support sustainable growth.

GLEBE STRUCTURES LTD - Analysis Report

Company Number: 14470088

Analysis Date: 2025-07-20 13:11 UTC

Financial Health Assessment of GLEBE STRUCTURES LTD (as of 30 Nov 2024)

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1. Financial Health Score: B

Explanation:
GLEBE STRUCTURES LTD demonstrates a generally sound financial position with steady growth in net assets and positive working capital. The company has healthy net current assets and a strong equity base relative to liabilities, indicating resilience. However, a noticeable decline in cash reserves and relatively high current liabilities compared to cash signals mild liquidity stress that should be monitored. Overall, the company is financially stable but could improve short-term liquidity management for a higher grade.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets (Equity)	£388,420	Solid growth (+£158k vs prior year), reflecting retained profits and asset growth.
Net Current Assets (Working Capital)	£161,702	Positive working capital suggests the company can meet short-term obligations comfortably.
Cash Balance	£18,891	Decline from £54,045 in previous year; a concerning drop reducing immediate liquidity.
Current Liabilities	£506,853	High level of short-term debts; manageable given positive working capital but requires caution.
Fixed Assets (Net)	£226,718	Growth in fixed assets (+£141k) indicates investment in property, plant or equipment.
Debtors	£649,664	Large debtor balance; could signal delayed payments from customers impacting cash flow.
Profit & Loss Reserve	£388,419	Retained earnings show profitability and reinvestment in the business.
Employees	5	Small workforce consistent with company size; no signs of workforce volatility.

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3. Diagnosis: What the Financial Data Reveals

• Healthy Asset Growth: The company has increased its fixed assets significantly, indicating investment in operational capacity or infrastructure. This is generally a positive indicator of growth and long-term planning.

• Strong Equity Position: The rise in net assets and shareholders’ funds shows that the company is retaining earnings and strengthening its financial base rather than relying excessively on external debt.

• Positive Working Capital: Net current assets are positive and growing, which is a vital sign of good short-term financial health, meaning current assets exceed current liabilities.

• Liquidity Symptoms: The sharp decrease in cash despite growing current assets suggests that much of the current assets are tied up in debtors (customer invoices). This "illiquid" asset form can cause cash flow stress if collections are slow.

• Debtor Concentration Risk: High debtor balances relative to cash and liabilities may indicate delayed payments or credit risk with customers, a symptom that could lead to cash shortages if not managed.

• Stable Employment: Employee numbers are steady, implying operational stability without overextension of human resources.

Overall, GLEBE STRUCTURES LTD exhibits the financial "vital signs" of a growing and stable business but shows "symptoms" of potential short-term liquidity tightness due to cash flow timing issues linked to receivables.

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4. Recommendations

• Improve Cash Flow Management:
  Focus on accelerating debtor collections and possibly negotiating better payment terms with customers to convert receivables into cash faster. Consider incentives for early payments or stricter credit controls.

• Maintain Working Capital Vigilance:
  Regularly monitor current liabilities and ensure sufficient liquid reserves to cover short-term debts, especially given the relatively high creditor balances.

• Asset Utilisation Review:
  Assess the return on the increased fixed asset base to confirm that investments are yielding adequate operational benefits and not tying up excessive capital.

• Contingency Planning:
  Given the lower cash buffers, maintain access to short-term financing options (e.g., overdrafts or invoice financing) to cover any unexpected liquidity gaps.

• Financial Reporting Transparency:
  Consider filing full accounts (including profit and loss statements) in the future to enhance transparency with stakeholders and support better strategic decision-making.

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Medical Analogy Summary

GLEBE STRUCTURES LTD appears to be in stable health with a strong cardiovascular system (equity and assets) and a steady metabolic rate (profit retention). However, the company exhibits symptoms akin to "dehydration" — a decline in cash reserves that could cause short-term distress if not addressed promptly. By managing its "fluid balance" (cash flow) carefully, it can maintain overall vitality and continue its growth trajectory.

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