PRESTIGE BUILDING AND FIRE SAFETY SOLUTIONS LTD

Executive Summary

Prestige Building and Fire Safety Solutions Ltd is in a solid financial position for a newly formed micro-entity, showing healthy liquidity and positive net assets. While limited operating history restricts deeper analysis, early indicators suggest sound management of working capital and solvency. Continued focus on cash flow management and building profitability will be key to sustaining financial health as the business develops.

PRESTIGE BUILDING AND FIRE SAFETY SOLUTIONS LTD - Analysis Report

Company Number: 15578655

Analysis Date: 2025-07-29 16:44 UTC

Financial Health Assessment: PRESTIGE BUILDING AND FIRE SAFETY SOLUTIONS LTD

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1. Financial Health Score: B

Explanation:
As a newly incorporated micro-entity operating for just over one year, Prestige Building and Fire Safety Solutions Ltd shows solid initial financial stability. The company has a positive net asset position and a healthy working capital buffer, which are promising vital signs. However, with limited operating history and relatively modest asset base, it is still in early stages of building financial resilience, warranting a good but cautious rating.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,622	Minimal investment in long-term assets, typical for a start-up micro company.
Current Assets	75,831	Healthy liquidity pool to meet short-term obligations.
Current Liabilities	54,661	Short-term debts are significant but covered by current assets.
Net Current Assets	23,050	Positive working capital indicates the company can comfortably cover short-term liabilities.
Net Assets (Shareholders' Funds)	24,672	Positive equity base; company is solvent with no net liabilities reported.
Employees	2	Small team consistent with micro company size classification.

Interpretation:

• The "healthy cash flow" analogy applies here: current assets exceed current liabilities by a comfortable margin, reducing liquidity risk.
• The company's net asset position confirms it is not over-leveraged or insolvent at this nascent stage.
• Limited fixed assets suggest a focus on service or labor-intensive activities rather than capital-intensive operations.
• Two directors, both joiners by occupation, indicate hands-on management potentially involved in day-to-day operations.

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3. Diagnosis

Underlying Financial Health:
Prestige Building and Fire Safety Solutions Ltd exhibits "symptoms of a healthy start-up" with a positive net asset position and adequate working capital. The company is not burdened with heavy long-term debt or fixed asset depreciation issues. The micro-entity exemption from audit and small employee count align with early-stage operational characteristics.

Potential Concerns:

• The company’s financial information only covers one accounting period, limiting trend analysis and insight into operational profitability or cash flow sustainability.
• The relatively high current liabilities compared to fixed assets suggest reliance on short-term financing or supplier credit, which should be monitored to avoid liquidity stress.
• No profit and loss data is available to assess operational performance or profitability trends.

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4. Recommendations

To enhance financial wellness and build resilience, the company should:

1. Develop Detailed Cash Flow Monitoring:
   Institute robust cash flow forecasting to ensure "healthy cash flow," especially since the company relies on current assets to cover liabilities.

2. Build Profitability Track Record:
   Focus on generating consistent profits to strengthen equity and reduce reliance on short-term liabilities.

3. Consider Gradual Asset Investment:
   Evaluate opportunities to invest in fixed assets or tools that improve operational efficiency without overextending capital.

4. Maintain Strong Working Capital Management:
   Keep current liabilities in check relative to current assets to avoid liquidity "symptoms of distress" such as late payments or cash shortages.

5. Plan for Growth and Compliance:
   As the company grows beyond micro thresholds, prepare for enhanced filing and audit requirements by maintaining detailed financial records.

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