NATIONAL GLAZING SOLUTIONS LTD

Executive Summary

NATIONAL GLAZING SOLUTIONS LTD is currently experiencing significant financial distress marked by negative net assets and poor liquidity, signaling urgent need for capital infusion and cash flow management. Immediate corrective actions are required to restore financial health and avoid insolvency risks. The company must focus on strengthening its financial structure and improving transparency to ensure sustainable operations.

NATIONAL GLAZING SOLUTIONS LTD - Analysis Report

Company Number: 13274197

Analysis Date: 2025-07-20 18:08 UTC

Financial Health Assessment Report for NATIONAL GLAZING SOLUTIONS LTD

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1. Financial Health Score: D (Poor)

Explanation:
The company exhibits significant financial distress characterized by persistent negative net assets and current liabilities exceeding current assets, indicating liquidity challenges and an ongoing capital deficit. This score reflects high risk and the urgent need for remedial financial management.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	2024 Value (£)	Interpretation
Current Assets	227	Extremely low liquid resources available.
Current Liabilities	5,158	High short-term debts due soon.
Net Current Assets (Working Capital)	-4,931 (2023), -4,931 (2024)	Negative working capital signals cash flow problems.
Net Assets (Shareholders’ Funds)	-5,650	Company is insolvent on balance sheet basis.
Cash	Not separately disclosed in 2024, £522 in 2023	Cash reserves are negligible and declining.
Share Capital	1	Minimal equity base; company is undercapitalized.
Employee Numbers	0	No employees, possibly owner-operated.

Additional Notes:

• Current liabilities are over 20 times the current assets, highlighting a severe liquidity squeeze.
• Net liabilities indicate the company owes more than it owns, a symptom akin to "organ failure" in financial terms.
• No audit has been conducted due to micro-entity exemptions, which limits external assurance but is typical for a company of this size.

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3. Diagnosis: What the Financial Data Reveals About Business Health

NATIONAL GLAZING SOLUTIONS LTD shows clear symptoms of financial distress:

• Liquidity Crisis: Negative net current assets for multiple years reveal that short-term obligations cannot be met by available short-term assets. This is like a patient experiencing a critical shortage of vital fluids—cash flow is insufficient to sustain day-to-day operations.
• Capital Deficiency: Persistently negative net assets suggest that accumulated losses have eroded shareholder equity. This chronic deficit is a "structural weakness," potentially threatening long-term viability unless corrected.
• Minimal Operational Scale: With no employees reported and a single director who is also the major shareholder, the company likely operates on a very small scale, possibly as a sole trader structure within a limited company. This may limit growth potential and access to capital.
• No Audit or Profit & Loss Disclosure: Limited financial transparency adds uncertainty. Without profit/loss data, it is difficult to judge operational performance, but balance sheet weakness strongly implies ongoing losses.
• Industry Risk: Operating in glazing, a sector often dependent on construction cycles, the company may face external market pressures affecting cash flow and profitability.

In sum, the company is in a precarious financial condition, akin to a patient with severe symptoms that require immediate intervention.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Urgent Cash Flow Management:

   • Develop a detailed cash flow forecast to identify imminent liquidity gaps.
   • Prioritize payments and negotiate extended terms with creditors to ease short-term pressure.

2. Capital Injection:

   • Consider additional equity funding or shareholder loans to restore positive net assets.
   • Explore external financing options or government support for small businesses if eligible.

3. Cost Control and Revenue Enhancement:

   • Evaluate operational expenses to reduce overheads, even if minimal.
   • Intensify marketing and sales efforts to increase revenue streams and improve cash inflows.

4. Financial Reporting Improvements:

   • Prepare and monitor profit and loss statements regularly to understand operational performance.
   • Consider voluntary audit or review for greater transparency to potential lenders or investors.

5. Strategic Review:

   • Assess business model viability given current financial strain; explore restructuring or pivoting services.
   • Seek professional financial and legal advice to avoid insolvency risks.

6. Compliance and Governance:

   • Maintain timely filings to avoid penalties and reputational damage.
   • Ensure ongoing compliance with Companies House and tax authorities.

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Medical Analogy Summary

The company is showing "symptoms of financial distress" with a "weak pulse" in liquidity and a "deficient immune system" in terms of equity capital. Without immediate "treatment" through capital infusion and cash flow stabilization, the "patient" risks entering a critical state that could lead to insolvency.

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