GLOW UP PAINTING SERVICES LTD

Executive Summary

Glow Up Painting Services Ltd is currently facing financial strain characterized by negative working capital and shareholders’ funds, indicating liquidity and solvency challenges. While there has been slight improvement in the latest year, the company requires focused financial management and possible capital support to restore healthy cash flow and strengthen its financial foundation.

GLOW UP PAINTING SERVICES LTD - Analysis Report

Company Number: 12885556

Analysis Date: 2025-07-29 20:16 UTC

Financial Health Assessment Report: GLOW UP PAINTING SERVICES LTD

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1. Financial Health Score: D

Explanation:
The company demonstrates persistent negative net assets and working capital deficits, indicating ongoing financial strain. Although there is a slight improvement in the latest year, the negative equity and liquidity challenges mark a financial condition that is weak and vulnerable.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£3,607	Relatively low investment in long-term assets, typical for service-based micro business.
Current Assets	£981	Insufficient liquid resources to cover short-term obligations.
Current Liabilities	£4,386	High short-term debts compared to current assets, posing liquidity risk.
Net Current Assets (Working Capital)	-£3,405	Negative working capital indicates potential cash flow difficulties—“symptom of distress.”
Total Assets Less Current Liabilities	£202	Slightly positive after deducting short-term liabilities from total assets, showing minor asset cushion.
Creditors Due After One Year	None in 2024 (was £1,980 in 2023)	Removal of long-term creditors improves solvency position slightly.
Net Assets (Shareholders Funds)	-£348	Negative equity suggests liabilities exceed assets—“financial health is compromised.”
Average Number of Employees	1	Small, likely owner-operated business with limited scale.

Trend Analysis:

• Net current liabilities have improved from -£5,192 in 2023 to -£3,405 in 2024, indicating some improvement in liquidity but still negative.
• Net assets improved from -£2,887 (2023) to -£348 (2024), showing progress but still negative equity persists.
• Fixed assets decreasing over the years may indicate asset disposals or lack of reinvestment.

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3. Diagnosis: Financial Condition Overview

GLOW UP PAINTING SERVICES LTD exhibits classic symptoms of a business struggling with liquidity and solvency:

• Liquidity Strain: Persistent negative working capital means current liabilities exceed current assets by a significant margin. This creates a risk of difficulty in meeting short-term obligations, akin to a patient showing signs of dehydration due to insufficient cash flow.

• Solvency Concerns: Negative net assets (shareholders’ funds) mean the company’s liabilities exceed its total assets. This is a warning sign analogous to low blood pressure in a patient—indicating the company's financial foundation is weak.

• Improving but Fragile: The slight recovery in net assets and working capital from the prior year suggests some remedial measures or operational improvements. However, the company remains in a vulnerable state that could deteriorate without ongoing financial care.

• Micro Entity Status & Single Employee: The business operates on a very small scale, likely owner-managed with constrained resources. This limits the capacity for large capital injections or operational scaling without external support.

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4. Recommendations: Steps to Improve Financial Wellness

To restore "healthy cash flow" and strengthen the financial condition, the company should consider:

1. Improve Liquidity Management:

   • Tighten credit control to accelerate cash inflows.
   • Negotiate extended payment terms with suppliers to ease short-term cash outflows.
   • Monitor cash flow forecasts closely to anticipate liquidity bottlenecks.

2. Reduce Current Liabilities:

   • Prioritize paying down high-interest or urgent debts to reduce financial pressure.
   • Explore restructuring current liabilities into longer-term arrangements where possible.

3. Enhance Profitability:

   • Review pricing strategy and cost structure to improve margins.
   • Evaluate service offerings for higher-value or recurring revenue opportunities.

4. Capital Injection:

   • Consider owner loans or external funding to bolster equity and working capital.
   • Seek advice on grants or government-backed schemes supporting small businesses in the painting sector.

5. Regular Financial Monitoring:

   • Implement monthly financial reviews to detect early warning signs of distress.
   • Engage with a financial advisor or accountant for tailored cash flow and tax planning.

6. Operational Efficiency:

   • Leverage technology or subcontracting to reduce fixed costs and improve flexibility.

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Executive Summary