RADIANT FLOOR SOLUTIONS LTD

Executive Summary

Radiant Floor Solutions Ltd is a young and profitable micro-sized company with a stable liquidity position and positive retained earnings, indicating a healthy financial start. While the company shows no distress symptoms, its limited cash reserves and asset base suggest a need for cautious growth management and cash flow strengthening to ensure future resilience. Continued focus on working capital and reinvestment will support sustainable financial wellness.

RADIANT FLOOR SOLUTIONS LTD - Analysis Report

Company Number: 14174676

Analysis Date: 2025-07-29 20:17 UTC

Financial Health Assessment of Radiant Floor Solutions Ltd (as of 30 June 2024)

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1. Financial Health Score: B-

Explanation:
Radiant Floor Solutions Ltd demonstrates promising early-stage financial health with a positive net asset position and retained earnings indicating profitability. However, the company’s absolute cash and asset base remain very modest, reflecting its micro-sized scale and recent incorporation. The presence of current liabilities, primarily corporation tax and accrued expenses, introduces some short-term liquidity considerations, but these are manageable given the cash on hand. Overall, the company shows signs of a "young but stable heart," needing to build stronger reserves and liquidity to improve resilience.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	639	Minimal short-term assets; predominantly cash, indicating a lean operation with little working capital.
Cash at Bank	638	Almost all current assets are cash, a healthy sign of liquidity but low in absolute terms.
Debtors	1	Negligible receivables; possibly indicating prompt cash collection or low sales volume.
Current Liabilities	324	Primarily corporation tax (74) and accrued expenses (250); manageable but needs monitoring.
Net Current Assets (Working Capital)	315	Positive working capital shows ability to cover immediate liabilities, a "stable pulse" in liquidity.
Total Assets Less Current Liabilities	315	Positive net assets indicate the company is solvent with more assets than short-term debts.
Shareholders’ Funds (Equity)	315	Equity growth from £1 at incorporation to £315 reflects retained profits and sound capital base.
Profit for the Year	314	Company made a profit this year, a strong indicator of operational health and business viability.
Number of Employees	2	Small team consistent with micro company status, indicating lean operational scale.

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3. Diagnosis

Radiant Floor Solutions Ltd exhibits the financial "vital signs" of a young, small business that is currently stable and profitable. The company’s positive retained earnings and shareholders’ funds suggest a healthy "growth heartbeat," having generated a profit in its second year. The liquidity position is acceptable, with cash sufficient to meet short-term liabilities, though absolute cash balances are low, reflecting the micro scale and early stage of the business.

The "symptoms" of financial health include no overdue filings, indicating good administrative compliance, and no debt beyond short-term liabilities. However, the minimal asset base and small working capital margin suggest limited buffer against unforeseen expenses or revenue delays—a common "fragility symptom" in micro businesses.

The absence of large debt or negative equity is encouraging, showing no signs of financial distress or insolvency risk at this point. The business operates in a niche plumbing and heating installation sector with experienced leadership (as per website information), which bodes well for sustained operations.

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4. Recommendations

To strengthen financial wellness and future resilience, Radiant Floor Solutions Ltd should consider the following actions:

• Build Cash Reserves: Aim to increase cash holdings to cover at least 3-6 months of operating expenses to create a "financial safety net" against potential downturns or unexpected costs.
• Enhance Working Capital Management: Explore opportunities to accelerate receivables and manage payables efficiently to improve cash flow velocity.
• Profit Reinvestment: Continue to reinvest profits into the business for growth initiatives such as marketing, training, or equipment to expand capacity and increase turnover.
• Monitor Tax Liabilities: Keep corporation tax accruals under review to avoid surprises; consider tax planning strategies to optimize payable amounts.
• Maintain Compliance: Continue timely submission of accounts and confirmation statements to prevent penalties or reputational risks.
• Consider Growth Financing: If expansion plans materialize, assess options for small business loans or investor funding to boost working capital and fixed assets.
• Risk Management: Develop a basic risk assessment for operational and financial risks, including potential sector-specific challenges like supply chain disruptions.

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