Company Number: 15222249

Analysis Date: 2025-07-29 17:30 UTC

Financial Health Assessment: Q B ROOFING LTD (as of 31 October 2024)

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1. Financial Health Score: B

Explanation:
Q B ROOFING LTD demonstrates a solid financial footing for a micro-entity in its first full year of operation. The company shows strong net current assets and positive net assets, which indicate a healthy liquidity position and good capital structure. However, as a newly incorporated micro business with limited financial history and no profit/loss data filed, there is still some uncertainty about operating cash flow consistency and profitability. Hence, a grade of B reflects good initial health with room for monitoring growth and operational performance.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	54,475	Investment in long-term assets like equipment. Healthy for startup roofing business.
Current Assets	239,435	Includes cash, debtors, stock; ample short-term resources.
Current Liabilities	125,408	Short-term debts; manageable relative to assets.
Net Current Assets	114,027	Positive working capital; company can cover short-term liabilities comfortably.
Total Assets Less Current Liabilities	168,502	Strong buffer after accounting for immediate debts.
Net Assets (Shareholders' Funds)	166,252	Indicates positive equity; owners’ funds exceed liabilities.
Average Number of Employees	2	Small workforce consistent with micro entity status and industry norms.

Additional Notes on Vital Signs:

• The company complies with micro-entity reporting standards, limiting detailed financial disclosures such as profit and loss.
• No audit required, common for micro companies, but this limits external validation of financial data.
• Accounts and returns are filed on time, indicating good governance and compliance.

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3. Diagnosis: Financial Condition Overview

"Vital signs" indicate a business with a healthy cash flow foundation and sound balance sheet as a young roofing company. The positive net current assets ("working capital") suggest the company can meet its short-term obligations without distress. Fixed assets investment signals readiness with necessary tools or equipment for roofing activities.

However, the absence of profit and loss data means we cannot yet assess profitability or operational efficiency—the "symptoms" of ongoing business health are incomplete. The company is still in early life stages (incorporated October 2023), so financial patterns may evolve significantly.

The directors, who also hold significant control and ownership, appear engaged and aligned, which supports stable governance.

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4. Recommendations

• Monitor Profitability Carefully:
  Once profit and loss accounts are available, closely review margins, cost control, and revenue streams to ensure sustainable earnings.

• Maintain Healthy Cash Flow:
  Continue managing receivables and payables prudently. Positive net current assets are a good sign but can quickly deteriorate if cash inflows slow.

• Plan for Growth Investment:
  Consider incremental fixed asset investments aligned with business expansion without overextending financing.

• Enhance Financial Reporting:
  Even though exempt, consider preparing internal management accounts regularly for better insight and decision-making.

• Risk Management:
  Stay vigilant for risks typical in construction-related sectors, such as project delays, cost overruns, and regulatory compliance.

• Governance and Compliance:
  Keep filing accounts and confirmation statements punctually to avoid penalties and maintain stakeholder confidence.

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