NEW VISION HOME IMPROVEMENTS LTD

Executive Summary

NEW VISION HOME IMPROVEMENTS LTD exhibits a healthy start with stable liquidity and positive equity in its first year of operation. While limited in scale, the company shows no immediate financial distress symptoms and maintains compliance. Focusing on cash flow management and profitability tracking will be key to sustaining growth and financial wellness.

NEW VISION HOME IMPROVEMENTS LTD - Analysis Report

Company Number: 15412222

Analysis Date: 2025-07-29 19:50 UTC

Financial Health Assessment Report for NEW VISION HOME IMPROVEMENTS LTD

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1. Financial Health Score: B

Explanation:
NEW VISION HOME IMPROVEMENTS LTD demonstrates a sound initial financial position typical for a newly incorporated micro/small enterprise. The company exhibits positive net current assets and a modest equity base, indicating a foundation of financial stability. However, the overall size and scale of operations are still very limited, and the absence of profit and loss detail limits a full profitability assessment. The "B" grade reflects a generally healthy start with scope for growth and strengthening financial resilience.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Net Current Assets (Working Capital)	1,130	Positive working capital, indicating sufficient short-term liquidity to cover immediate liabilities. "Healthy cash flow" symptom.
Current Liabilities	1,381	Manageable short-term debts relative to assets. No signs of distress.
Debtors (Receivables)	2,511	Modest receivables; reflects early-stage business activity. Efficiency in collection yet to be tested.
Shareholders’ Funds (Equity)	1,130	Positive equity base; owner has invested capital and retained earnings (albeit small).
Company Status	Active	Operating normally, no insolvency or liquidation symptoms.
Company Age	Less than 1 year	Very early stage; limited financial history and growth trajectory.

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3. Diagnosis

Overall Financial Condition:
NEW VISION HOME IMPROVEMENTS LTD is in a stable "healthy" financial state typical of a start-up phase company. The balance sheet reveals a positive net current asset position, which is a vital sign of liquidity health and ability to meet short-term debts. The company shows prudent financial management with no overdue filings or compliance issues, which supports operational stability.

Symptoms Analysis:

• The positive working capital suggests the company is not currently experiencing liquidity stress — a key symptom of financial distress.
• The moderate level of debtors and creditors indicates initial trading activities, but the scale remains small, consistent with a new business ramping up.
• The absence of an income statement (due to exemption for small companies) limits insight into profitability, but retained earnings suggest at least a break-even or small profit position.
• The director holds full control, which may mean swift decision-making but also concentration risk.

Risks and Considerations:

• Being very new, the company faces typical start-up risks such as cash flow volatility, customer acquisition challenges, and limited access to credit.
• The small equity base means the company might require additional capital injections as it scales.
• Industry (roofing activities) involves operational and weather-related risks, and strong cash flow management will be essential.

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4. Recommendations

To enhance financial wellness and build a more robust foundation, the company should consider the following actions:

1. Strengthen Cash Flow Management:

   • Monitor debtor collections closely to avoid cash flow bottlenecks.
   • Maintain a buffer of liquid assets to withstand seasonal or operational fluctuations common in construction-related sectors.

2. Build Profitability Tracking:

   • Even though not required to file full accounts now, internally track profit and loss regularly to identify margin pressures or cost overruns early.

3. Plan for Capital Needs:

   • As the business grows, plan for potential capital needs either via equity injections or credit facilities to sustain expansion and manage working capital.

4. Risk Mitigation:

   • Implement risk controls related to operational hazards and contractual terms to protect cash flow and business continuity.

5. Governance and Controls:

   • Although director-held, consider establishing basic governance practices to improve transparency and prepare for potential future investors or partners.

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