SBL CARPENTRY LTD

Executive Summary

SBL CARPENTRY LTD exhibits strong financial health with significant growth in net assets and working capital, indicating healthy cash flow and operational stability. The company is well-positioned for continued success with prudent financial management and a solid equity base. Maintaining liquidity and reviewing asset strategy will support sustainable growth.

SBL CARPENTRY LTD - Analysis Report

Company Number: 13296272

Analysis Date: 2025-07-29 14:07 UTC

Financial Health Assessment for SBL CARPENTRY LTD as of 31 March 2024

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1. Financial Health Score: B+

Explanation:
SBL CARPENTRY LTD shows robust financial growth and strong liquidity for a micro-entity in the carpentry and joinery manufacturing sector. The company’s net assets and working capital have improved significantly year-on-year, indicating healthy cash flow and good management of short-term obligations. The slight reduction in fixed assets is not concerning given the large increase in current assets. The score reflects a financially stable condition with room for continued growth and efficiency improvements.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£20,920	Moderate investment in long-term assets; slight decrease from previous year suggests no major capital expenditure needed recently.
Current Assets	£122,249	Strong increase indicates improved cash or receivables, a sign of liquidity and operational efficiency.
Current Liabilities	£36,965	Increased, but manageable relative to current assets; company can cover short-term debts comfortably.
Net Current Assets	£85,284	Healthy working capital; more than double previous year showing strong short-term financial health.
Net Assets (Equity)	£106,204	Solid equity base, showing retained earnings and shareholder investment growth.
Average Number of Employees	1	Micro-entity with low overhead; labour cost likely controlled.

Key Interpretation:
The company demonstrates a "healthy pulse" with a marked increase in net current assets, signaling strong liquidity and operational cash flow. The balance between assets and liabilities is well managed, reflecting good financial "vital signs" and capacity to meet short-term obligations without stress.

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3. Diagnosis

SBL CARPENTRY LTD is in good financial health for a micro-sized business. The significant jump in current assets (from £33k to £122k) suggests improved cash reserves or efficient management of receivables and inventories. The company’s net assets have more than doubled compared to the previous year, indicating profitable operations or retained earnings accumulation.

The slight decrease in fixed assets (from £26k to £20k) might indicate asset disposal or no major recent capital investments, which could be a strategic choice to preserve cash or a symptom of limited reinvestment. However, this is not currently a concern given the strong overall net asset position.

The company maintains a manageable level of current liabilities, with a comfortable working capital buffer. This balance points to operational stability without liquidity strain—a "healthy cash flow" environment.

No indications of financial distress, insolvency risks, or over-leverage appear in the data. The company’s financial "symptoms" suggest prudent management and a stable foundation for growth.

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4. Recommendations

• Maintain Strong Liquidity: Continue to monitor and manage current assets and liabilities to preserve healthy working capital. Avoid unnecessary short-term borrowing that could strain liquidity.

• Evaluate Fixed Asset Strategy: Review fixed asset utilization to ensure that any disposals or reduced investment do not hamper operational efficiency or future growth potential. Consider planned capital expenditures if growth opportunities arise.

• Cash Flow Monitoring: Regularly track cash inflows and outflows to maintain smooth operations, especially given the micro-entity size where cash flow can be more volatile.

• Growth and Diversification: Explore potential to scale operations or diversify services within the carpentry and joinery niche to enhance revenue streams and reduce risk exposure.

• Compliance and Filing: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good corporate governance.

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