HOME IMPROVEMENTS TM LTD

Executive Summary

HOME IMPROVEMENTS TM LTD is a young, micro-sized glazing business showing clear signs of financial health with positive working capital and growing equity. The company maintains a stable financial foundation with no immediate distress symptoms, positioning it well for cautious growth. Continued focus on cash flow management and strategic asset investment will support sustainable development as the company matures.

HOME IMPROVEMENTS TM LTD - Analysis Report

Company Number: 14762482

Analysis Date: 2025-07-29 12:58 UTC

Financial Health Assessment for HOME IMPROVEMENTS TM LTD

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1. Financial Health Score: B

Explanation:
HOME IMPROVEMENTS TM LTD shows signs of solid foundational health with positive net current assets and growing shareholders’ funds. As a micro-entity incorporated recently (2023), the company has demonstrated a healthy increase in fixed and current assets, indicating some growth momentum. However, the relatively small scale and limited financial history restrain a top-tier rating. The score B reflects a stable early-stage company with manageable short-term obligations and positive equity.

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2. Key Vital Signs

Metric	2025 (£)	2024 (£)	Interpretation
Fixed Assets	15,442	11,430	Increasing investments in long-term assets – positive sign of growth and capital investment.
Current Assets	23,089	6,790	Significant increase in liquid and short-term assets, indicating improved liquidity.
Current Liabilities	20,984	6,288	Growth in short-term obligations, but still covered by current assets.
Net Current Assets (Working Capital)	2,105	502	Positive and growing working capital, indicating the company can meet short-term debts.
Total Assets less Current Liabilities	17,547	11,932	Increase reflects overall asset growth after covering immediate liabilities.
Shareholders’ Funds (Equity)	17,547	11,932	Equity growth shows retained earnings or capital injections, strengthening financial base.
Average Number of Employees	1	0	Very small workforce, typical for a micro entity, indicating lean operations.

Interpretation:

• The company’s "vital signs" show a healthy cash flow environment with positive working capital—a good indication that it can cover short-term liabilities without stress.
• The increase in fixed assets suggests investment in tools or property necessary for the glazing business, a positive sign of operational scaling.
• The growth in shareholders' funds signals either profitability or capital contributions, both of which strengthen the company’s balance sheet.
• The small employee base reflects a lean structure, typical for a newly incorporated micro business.

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3. Diagnosis

HOME IMPROVEMENTS TM LTD is in an early but financially stable stage of its business lifecycle. The company exhibits no symptoms of distress such as negative working capital or declining equity. The gradual increase in assets and equity is a healthy sign, suggesting the business is building a solid foundation. Cash flow appears adequate to meet current liabilities, and the company is not over-leveraged. As a micro-entity in the glazing sector, the company’s financials reflect cautious but positive growth.

No red flags such as large overdue accounts or potential solvency issues are present. The company’s director, Mr. Tyron Robert Stone, controls 100% of shares and voting rights, which implies centralized decision-making and potentially agile management.

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4. Recommendations

• Maintain Working Capital Vigilance: Continue monitoring short-term liquidity to avoid cash flow crunches, especially as the company scales or takes on larger contracts.
• Cash Flow Management: Implement robust cash flow forecasting to manage payment timings against suppliers and customers, maintaining "healthy cash flow" as the company grows.
• Strategic Asset Investment: While the increase in fixed assets is positive, ensure that capital expenditures align with projected revenues to avoid overextension.
• Growth Planning: As the business is in a growth phase, consider formalising financial planning and budgeting for the next 1-3 years to support sustainable expansion.
• Governance and Compliance: Ensure timely filing of accounts and confirmation statements continue to avoid penalties and maintain good standing.
• Explore Financing Options: If expansion requires external funding, explore micro-business-friendly funding options (grants, loans, or equity partners) cautiously to avoid undue financial stress.
• Build a Financial Buffer: Aim to increase net current assets to provide a buffer against unexpected expenses or market fluctuations.

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