Company Number: 14773845

Analysis Date: 2025-07-29 15:43 UTC

Financial Health Assessment of ROES ROOFING LTD as of 30 April 2024

---

1. Financial Health Score: B

Explanation:
ROES ROOFING LTD demonstrates a solid foundational financial position for a newly incorporated micro-entity. The company shows a positive net asset base and healthy working capital, indicative of good short-term financial stability. However, the limited scale of operations, minimal fixed assets, and early stage of business lifecycle suggest room for growth and resilience improvement. Hence, a grade B reflects a stable but developing financial health status.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	7,365	Modest investment in long-term assets, typical for a startup roofing company.
Current Assets	49,222	Healthy liquid resources including cash and receivables.
Current Liabilities	31,565	Short-term obligations manageable relative to current assets.
Net Current Assets	17,849	Positive working capital indicates ability to cover short-term debts comfortably.
Total Assets Less Current Liabilities	25,214	Reflects overall asset base after settling short-term liabilities.
Net Assets / Shareholders’ Funds	22,594	Positive equity shows company is solvent and funded by owner’s capital plus retained earnings.
Average Employees	2	Small workforce consistent with micro-entity classification.

Interpretation of Vital Signs:

• Healthy Cash Flow Proxy: The positive net current assets (working capital) serve as a "healthy pulse," showing liquidity strength to meet immediate obligations without distress.
• Stable Solvency: Positive net assets denote no symptoms of insolvency or financial strain at this embryonic stage.
• Early Stage Asset Base: Limited fixed assets suggest the company is asset-light, common for service-based trades like roofing, relying more on labour and materials than heavy capital equipment.

---

3. Diagnosis: Overall Financial Condition

ROES ROOFING LTD is in the early stages of business development with strong initial financial health. The balance sheet “vital signs” show no symptoms of financial distress such as negative working capital or net liabilities. The company is solvent, liquid, and appears well-capitalized by the sole shareholder/director, Mr. Tom Anthony Moyers, who holds full control.

The “symptoms” of limited fixed assets and a small workforce are typical for a micro-entity focused on service delivery rather than capital-intensive operations. As a new entrant (incorporated April 2023), it is expected to have limited trading history and modest scale. The absence of overdue filings and compliance with reporting deadlines is a positive governance sign, indicating disciplined financial management.

---

4. Recommendations to Improve Financial Wellness

• Monitor Cash Flow Closely: Maintain the healthy working capital by carefully managing receivables and payables to avoid any liquidity “shortness of breath.”
• Plan for Asset Investment: As the business grows, consider investing strategically in tools or equipment to enhance operational capacity and efficiency.
• Build Profit Reserves: Focus on generating and retaining profits to build the P&L reserve, providing a financial “immune system” against future shocks or downturns.
• Expand Workforce Prudently: Incremental hiring aligned with business growth will help manage workload without overextending financial resources.
• Regular Financial Reviews: Conduct periodic financial health checks to detect early “symptoms” of distress such as increasing liabilities or shrinking net assets.
• Explore Growth Opportunities: Investigate market demand and pricing strategies to increase turnover within the micro-entity limits or prepare for scaling to a small company category.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties that can strain finances.

---