Company Number: 13056250

Analysis Date: 2025-07-20 11:15 UTC

Financial Health Assessment: K BUTLER ROOFING LTD (as of 31 March 2024)

---

1. Financial Health Score: B

This company shows a solid financial footing typical for a micro-entity roofing business in its early growth phase. The score “B” reflects a generally healthy state with room to strengthen certain aspects like fixed asset management and liability reduction to ensure more robust resilience.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	25,212	Slight reduction since 2023; investment in long-term resources stable but declining.
Current Assets	53,321	Healthy cash and receivables base, though decreased from the previous year.
Current Liabilities	16,472	Reduced significantly, indicating better short-term debt management.
Net Current Assets	36,849	Strong working capital; “healthy cash flow” symptom indicating ability to cover short-term obligations comfortably.
Total Net Assets	54,612	Positive and growing equity base, improving shareholder value.
Share Capital	100	Minimal capital injection; typical for micro-entity but signifies reliance on retained earnings.
Average Employees	2	Small, controlled workforce consistent with micro company status.

Interpretation:

• Working Capital: The net current assets at £36,849 show the company has a good buffer of liquid assets over short-term obligations, a strong “heartbeat” sign of operational liquidity.
• Fixed Assets Decline: The decrease in fixed assets (£25,212 from £33,074) may indicate asset disposals or depreciation outpacing new investments, warning of potential underinvestment in long-term productive capacity.
• Liabilities: Both current and long-term liabilities have decreased, reflecting a positive trend in debt reduction—akin to the company “shedding excess weight” to improve financial efficiency.
• Equity Growth: Shareholders’ funds increasing from £52,920 to £54,612 suggests retained profits and steady value accumulation, akin to “building muscle” in financial terms.

---

3. Diagnosis

K BUTLER ROOFING LTD is showing signs of financial health and stability, particularly in liquidity and equity strength. The business has successfully managed to reduce its short-term debts, improving working capital and reducing financial stress symptoms.

However, the reduction in fixed assets signals the need for vigilance. If not replaced or maintained, it could lead to operational capacity constraints or increased maintenance costs in the future, analogous to “wear and tear” reducing the company’s physical robustness.

The modest share capital indicates the company largely depends on internally generated funds rather than external equity injection, which is normal for micro businesses but could limit growth and investment potential.

Given its micro-entity size and young age (incorporated in late 2020), the company appears to be on a steady growth trajectory with prudent financial management.

---

4. Recommendations

To improve financial wellness and ensure sustainable growth, K BUTLER ROOFING LTD should consider the following:

• Asset Renewal Strategy: Plan capital expenditures to replace or upgrade fixed assets, preventing potential “frailty” in core operational equipment and maintaining efficiency.
• Maintain Strong Liquidity: Continue rigorous management of current liabilities to sustain a “healthy cash flow” status and avoid liquidity crunches.
• Explore Capital Injection: While current equity is adequate, exploring modest external funding or shareholder investment could provide a “nutritional boost” for expansion or larger contracts.
• Monitor Profitability: Though profit figures are not provided, ensuring that retained earnings continue to grow will be vital for strengthening net assets and financial resilience.
• Employee Efficiency: With only 2 employees, maintaining productivity and perhaps cross-training could maximize output without significantly increasing overheads.
• Regular Financial Review: Continue timely filing and monitoring of accounts and returns to avoid penalties and maintain transparency—a sign of “good corporate health hygiene.”

---