Company Number: 12534090

Analysis Date: 2025-07-19 11:52 UTC

Financial Health Assessment of L Bertram Flooring Ltd

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1. Financial Health Score: B

L Bertram Flooring Ltd demonstrates a solid financial footing for a micro-entity with consistent growth in net assets and strong liquidity. The company shows "healthy cash flow" signs, maintaining positive working capital and shareholder equity. However, as a small sole-director firm in a competitive trade sector, it should monitor scale and diversification risks to maintain resilience.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	34,691	Sufficient short-term assets indicating good liquidity to cover immediate obligations.
Current Liabilities	8,553	Low short-term debts relative to assets, a positive indicator.
Net Current Assets (Working Capital)	26,138	Healthy positive working capital, indicating ability to fund day-to-day operations comfortably.
Net Assets / Shareholders' Funds	25,418	Positive and growing equity base, showing retained profits or capital contributions are increasing.
Share Capital	100	Minimal share capital, typical for a micro private company, highlighting reliance on retained earnings.
Employee Count	1	Sole director/operator, indicating high dependence on a single individual’s expertise and effort.

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3. Diagnosis: Financial Health Overview

• Liquidity and Solvency: The company’s current assets comfortably exceed current liabilities, with net current assets improving from £18,688 (2023) to £26,138 (2024). This "healthy cash flow" symptom means L Bertram Flooring Ltd is well-positioned to meet short-term obligations without distress.

• Capital Structure: With net assets standing at £25,418 and shareholders' funds matching this figure, the company is solvent and retains all equity on its balance sheet. The equity growth from £17,968 in 2023 to £25,418 in 2024 reflects profitable operations or efficient capital management.

• Growth Trends: Over the last 4 years, the business has steadily increased its net assets from £7,006 in 2020 to £25,418 in 2024. This positive growth trajectory signals expanding operational success and financial stability.

• Scale and Risk Factors: As a micro-entity with one employee (the director), the company’s operational and financial health is closely tied to the director's capacity. The absence of external investors or multiple stakeholders can limit access to capital and risk diversification.

• Compliance and Reporting: The company appears compliant with filing deadlines and exemption criteria, avoiding penalties and maintaining good standing.

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4. Recommendations for Financial Wellness Enhancement

• Maintain Strong Working Capital Management: Continue monitoring receivables, payables, and cash balances to preserve liquidity. Avoid overextension of credit or accumulation of excessive liabilities.

• Build Reserves for Unexpected Events: Gradually increase retained earnings or cash reserves to buffer against market fluctuations or unforeseen expenses, enhancing financial resilience.

• Consider Diversification or Expansion: Explore opportunities to expand customer base or service offerings to reduce dependence on single revenue streams and mitigate concentration risk.

• Formalize Succession or Support Plans: Given the sole director/operator model, consider contingency planning for continuity in case of unexpected absence or increased workload.

• Review Capital Structure Periodically: While current equity levels are sound, periodic assessment for potential capital injections or debt financing could support growth ambitions.

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