Company Number: 12924692

Analysis Date: 2025-07-20 15:57 UTC

Financial Health Assessment for LEVETT & QUINN LIMITED (as at 31 December 2023)

---

1. Financial Health Score: B

Explanation:
LEVETT & QUINN LIMITED exhibits a strong liquidity position, solid net assets growth, and positive working capital, indicating generally healthy financial "vital signs." However, the presence of certain liabilities (notably tax and directors’ current accounts) and the small size of the company relative to industry peers suggests room for financial strengthening and risk management improvements. The company is financially stable but should maintain vigilance to sustain growth and operational smoothness.

---

2. Key Vital Signs

Metric	2023 Value	Interpretation
Current Assets	£223,264	Increased from £144,139 in 2022, indicating improved short-term asset availability.
Cash Balance	£173,984	High cash reserves signal healthy cash flow and liquidity. This is a key sign of financial "heart rate."
Trade Debtors	£43,564	Growth in receivables suggests expanding sales but requires active credit control to avoid cash flow strain.
Current Liabilities	£69,277	Slight increase from £68,257 in 2022; manageable given current assets.
Net Current Assets (Working Capital)	£153,987	Robust positive working capital, a strong indicator of solvency and operational liquidity.
Net Assets / Shareholders’ Funds	£163,087	Increased significantly from £95,215 in 2022, reflecting retained earnings and capital growth—sign of good financial "immune system."
Fixed Assets (Net Book Value)	£11,235	Lower than prior year (£19,333), reflecting depreciation, but still providing asset backing.
Provisions for Liabilities	£2,135	New provision indicates prudence but warrants monitoring for any emerging risks.

---

3. Diagnosis: Financial Condition and Underlying Health

LEVETT & QUINN LIMITED shows a healthy financial pulse with strong liquidity and an improving equity base. The company’s cash reserves have grown substantially, which provides a buffer against unexpected expenses or market fluctuations—a sign of a “healthy cash flow.” Working capital is comfortably positive, meaning short-term obligations can be met easily, reducing the risk of financial distress symptoms like liquidity crunches.

The increase in trade debtors suggests business growth, but also potential exposure to delayed payments. The directors should monitor debtor aging to prevent cash flow “blockages.” The company’s fixed assets are depreciating, consistent with normal wear and tear, which is standard and not an immediate concern.

One noteworthy observation is the relatively high tax and accrued expenses under current liabilities, including a notable reduction in the directors’ current accounts balance (from £49,191 in 2022 to £3,530 in 2023), which indicates possible repayments or adjustments. The company’s consistent filing and exemption from audit (due to small company status) suggest compliance but also limit external assurance on financial accuracy.

Overall, the company’s financial health is stable and growing, with no significant distress signals such as negative net assets, excessive debt, or liquidity shortages.

---

4. Recommendations: Improving Financial Wellness

• Enhance Debtor Management:
  Implement or tighten credit control policies to ensure timely collection of receivables. This will maintain the healthy cash flow and prevent “blockages” that could cause stress.

• Monitor Tax and Provisions:
  Regularly review tax liabilities and the appropriateness of provisions for liabilities to avoid surprises that could strain finances.

• Asset Management:
  Plan for future capital expenditure to replace depreciated fixed assets, ensuring operational capacity is maintained without sudden large outlays.

• Cash Flow Forecasting:
  Maintain detailed cash flow forecasts to anticipate and manage expenditure cycles, safeguarding the “financial heartbeat.”

• Consider Financial Reporting Enhancements:
  Although audit exemption is permitted, consider voluntary audits or reviews to provide external assurance, which could be beneficial for stakeholder confidence and future financing.

• Strategic Growth Planning:
  With increasing net assets and positive working capital, evaluate opportunities for growth investments, possibly expanding workforce or market reach, while maintaining financial prudence.

---