Company Number: 13667986

Analysis Date: 2025-07-29 20:01 UTC

Financial Health Assessment for PAT BUILDERS SOLUTIONS LTD

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1. Financial Health Score: B

Explanation:
PAT BUILDERS SOLUTIONS LTD shows a solid improvement in its financial position over two years, with growing net current assets and net assets. The company is maintaining positive working capital and shareholders’ funds, indicating healthy liquidity and equity. However, as a micro-entity with limited financial disclosures and modest asset size, there is room for improvement in cash management and risk diversification before reaching an “A” grade.

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2. Key Vital Signs

Metric	2023 Value	2022 Value	Interpretation
Current Assets	£27,366	£9,904	Healthy increase in liquid and short-term assets.
Current Liabilities	£9,346	£1,725	Increase in short-term debts; manageable given assets.
Net Current Assets	£18,020	£8,179	Positive working capital signals ability to meet debts.
Net Assets (Shareholders' Funds)	£18,020	£8,179	Equity has more than doubled, indicating retained earnings or capital injection.
Number of Employees	2	2	Small, stable workforce consistent with micro-entity status.

• Working Capital (Net Current Assets): The "healthy cash flow" indicator here is the net current assets growing from £8,179 to £18,020, showing improved liquidity and operational efficiency.
• Equity Growth: The doubling of shareholders’ funds suggests the company is building a stronger financial foundation.
• Liabilities: Current liabilities have increased but remain well covered by current assets, indicating no immediate liquidity stress.

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3. Diagnosis

Symptoms Analysis:

• The company exhibits "healthy cash flow" with increasing current assets outpacing liabilities, signaling good short-term financial management.
• The doubling of net assets in one year resembles a positive "recovery" or growth phase in financial health.
• The stable employee count and lack of overdraft or long-term debt entries suggest a conservative operational approach.
• The change of company name early in 2024 (from PPD ELECTRICIANS LTD to PAT BUILDERS SOLUTIONS LTD) possibly indicates strategic repositioning or rebranding, which is common in growing SMEs and not a symptom of distress.
• Director changes at the end of 2023 may reflect normal governance adjustments rather than red flags.

Diagnosis:
PAT BUILDERS SOLUTIONS LTD is in a stable financial condition with clear signs of growth and adequate liquidity. The company currently shows no symptoms of financial distress such as negative working capital, recurring losses, or excessive debt. Being a micro-entity, it operates with simple financial structures but is building a solid equity base.

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4. Recommendations

To sustain and improve financial wellness, PAT BUILDERS SOLUTIONS LTD should consider:

• Maintain Healthy Liquidity: Continue monitoring working capital closely to ensure the company can cover short-term obligations without strain.
• Build Cash Reserves: Aim to increase cash or cash-equivalent holdings to buffer against unexpected expenses or slow receivables.
• Review Debtor and Creditor Terms: Optimize credit control to accelerate cash inflows and negotiate favorable payment terms with suppliers to manage outflows.
• Plan for Growth: With equity growth, explore opportunities for reinvestment in tools, technology, or workforce to scale operations profitably.
• Governance Continuity: Ensure smooth director transitions and maintain transparent records to support stakeholder confidence.
• Prepare for Next Filing: Stay timely with accounts and confirmation statements to avoid penalties and maintain good standing.

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