Company Number: 12578346

Analysis Date: 2025-07-20 14:47 UTC

Financial Health Assessment for QUBE SURVEYORS LIMITED

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1. Financial Health Score: B

Explanation:
QUBE SURVEYORS LIMITED demonstrates a generally healthy financial condition with solid net current assets and positive shareholders' funds, indicating good liquidity and solvency. The company maintains a comfortable buffer of working capital, suggesting a healthy cash flow position. However, the slight decline in net current assets and shareholders’ funds in the latest year, compared to the prior year, signals early symptoms of financial tightening that warrant monitoring. Overall, the score 'B' reflects a financially stable company with minor cautionary signs.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	607	714	Very low capital investment; typical for service firms.
Current Assets	235,241	283,556	Strong current assets but showing a downward trend.
Current Liabilities	78,873	102,645	Manageable short-term debts; decreasing liabilities is positive.
Net Current Assets (Working Capital)	156,368	180,911	Healthy liquidity; sufficient to cover short-term obligations.
Total Assets Less Current Liabilities	156,975	181,625	Reflects net asset base; slight decline indicates caution.
Shareholders’ Funds	156,975	181,625	Positive equity; company is solvent but equity has reduced.
Average Number of Employees	4	4	Stable workforce size, indicating consistent operations.

Interpretation of Vital Signs:

• Healthy cash flow: The company holds a solid net current asset position (£156k), indicating it can comfortably meet short-term commitments. This is akin to a patient with a strong pulse and good oxygenation—essential signs of financial vitality.
• Symptoms of distress: The reduction in current assets and shareholders' funds from 2023 to 2024 suggests a mild contraction in resource availability, potentially due to decreased sales, increased expenses, or capital withdrawals. This is similar to noticing a slight drop in blood pressure that requires monitoring but is not yet critical.
• Low fixed assets: The minimal fixed assets imply a business model not reliant on heavy equipment or property, typical for surveyor services, reducing risk from asset depreciation.

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3. Diagnosis

QUBE SURVEYORS LIMITED is in a financially stable state, showing good liquidity and positive equity, which are vital signs of a healthy business. The company’s working capital comfortably exceeds current liabilities, suggesting no immediate cash flow distress. However, the slight year-on-year decline in net current assets and shareholders’ funds signals early symptoms of tightening financial conditions. This could stem from operational challenges or market fluctuations typical in the engineering and surveying sector.

The company is still in a growth or consolidation phase (incorporated in 2020), with a modest capital base (£100 share capital) and a small but steady employee count. The absence of audit requirements (micro-entity exemption) implies uncomplicated financial structures, but also means less rigorous external scrutiny.

Overall, the diagnosis is that QUBE SURVEYORS LIMITED is financially healthy but should keep vigilant to prevent the mild deterioration observed from progressing into more severe financial distress.

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4. Recommendations

• Monitor Cash Flow Closely: Maintain a rigorous cash flow forecast to identify any liquidity crunch early. Like a patient tracking vital signs, this will alert management to intervene before symptoms worsen.
• Cost Control and Revenue Enhancement: Investigate the causes of the decline in current assets and shareholders’ funds. Explore opportunities to reduce overheads or improve billing efficiency to stabilize and grow net assets.
• Strengthen Equity Position: Consider retaining earnings rather than distributing profits to improve shareholders’ funds. A stronger equity base acts like a robust immune system against financial shocks.
• Review Debtor Management: Since current assets are significant, ensure debtors (clients owing money) are collected promptly to sustain healthy working capital.
• Plan for Growth Investment: Although fixed assets are low, evaluate if strategic investments in technology or equipment could improve operational efficiency and competitive edge.
• Regular Financial Review: Schedule quarterly financial health check-ups to monitor trends and respond quickly to adverse changes.

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