QUANTITY SURVEYING SW LTD

Executive Summary

Quantity Surveying SW Ltd demonstrates robust financial health for a young company, with strong liquidity and growing equity. The company’s increased investment in assets and positive working capital indicate operational growth and stability. Attention to managing rising tax liabilities and diversifying governance will support sustained financial wellness.

QUANTITY SURVEYING SW LTD - Analysis Report

Company Number: 13961131

Analysis Date: 2025-07-29 20:23 UTC

Financial Health Assessment of Quantity Surveying SW Ltd as of 31 March 2024

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1. Financial Health Score: B

Explanation:
Quantity Surveying SW Ltd exhibits a solid financial footing for a young company (incorporated 2022), with steady growth in net assets and net current assets. Its liquidity position is healthy with ample cash reserves relative to current liabilities. Minor caution is warranted due to increased current liabilities (notably corporation tax and trade creditors), but overall the company shows signs of financial vitality and prudent management.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets	£16,590	Net positive assets indicate the company’s equity base is growing, a healthy sign for stability.
Net Current Assets	£4,879	Positive working capital ("healthy cash flow") suggesting the company can meet short-term debts.
Cash at Bank	£38,652	Strong cash reserve relative to liabilities, reinforcing liquidity and operational flexibility.
Current Liabilities	£36,128	Increased from prior year; includes significant corporation tax (£20,058) and trade creditors.
Fixed Assets	£11,711	Investment in tangible assets increased, indicating reinvestment in operational capacity.
Shareholders’ Funds	£16,487	Equity growth from retained earnings suggests profitability and reinvestment rather than loss.
Trade Debtors	£2,355	Slightly lower than previous year, indicating efficient collection or reduced credit sales.
Director Ownership	75-100%	Clear control by a single individual (Mark Pierce), implying swift decision-making but potential concentration risk.

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3. Diagnosis: Financial Condition Overview

• Liquidity and Working Capital:
  The company maintains a "healthy cash flow" with cash reserves exceeding current liabilities, which is a vital sign of financial comfort. Positive net current assets demonstrate the ability to cover short-term obligations without stress.

• Growth and Investment:
  A near doubling of net assets year-over-year reflects sound profitability and prudent retention of earnings. Increased investment in fixed assets (plant & machinery) signals growth and commitment to expanding operational capacity.

• Debt and Obligations:
  Current liabilities have more than doubled, driven largely by corporation tax owed and trade creditors. While this is manageable given cash reserves, the spike in tax liabilities could indicate a tax payment timing issue or increased taxable profits.

• Operational Efficiency:
  Trade debtors have decreased, which may indicate improved receivables management or potentially lower sales on credit terms. The company employs only one person (the director), suggesting a lean operational structure.

• Governance and Control:
  With a single director owning 75-100% of shares and voting rights, decision-making is centralized, which can be efficient but also presents a risk if key person events occur.

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4. Recommendations for Financial Wellness

• Monitor and Manage Tax Liabilities:
  The significant corporation tax liability should be carefully managed to avoid cash flow strain. Consider implementing quarterly tax payments or better forecasting to smooth out obligations.

• Maintain Liquidity Cushion:
  Continue to maintain or grow cash reserves relative to current liabilities to guard against unexpected expenses or business downturns.

• Diversify Management:
  Consider appointing additional directors or advisors to reduce concentration risk and provide broader strategic oversight.

• Optimize Working Capital:
  Continue efficient debtor collection practices and negotiate favourable terms with suppliers to keep working capital positive and flexible.

• Plan for Growth:
  With increased fixed asset investment, ensure that these assets are deployed effectively to generate increased revenue and profitability.

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