Company Number: 14526173

Analysis Date: 2025-07-20 13:52 UTC

Financial Health Assessment: SECURE FIX ROOFING LTD (as at 31 December 2023)

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1. Financial Health Score: C

Explanation:
The company shows basic operational activity with positive net assets, but there are early signs of liquidity pressure and a very small equity base. As a micro-entity newly incorporated in late 2022, it is still in an initial growth phase. The score reflects a cautious outlook, indicating the company is stable but requires close monitoring and improvements to ensure sustainable financial health.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	16,000	Investment in long-term assets is modest, typical for a micro-entity roofing business.
Current Assets	72,280	Includes cash, receivables, and stock; represents short-term resources available.
Current Liabilities	78,949	Short-term debts slightly exceed current assets, indicating a working capital deficit.
Net Current Assets (Working Capital)	-6,669	Negative working capital suggests liquidity “symptoms” of strain; company may struggle to cover short-term obligations promptly.
Total Assets Less Current Liabilities	9,331	Positive but small buffer after covering short-term debts; overall net assets.
Net Assets (Equity)	9,331	Shareholders’ funds are positive but minimal, reflecting limited retained earnings or capital injection.
Employees	2	Small team consistent with micro-entity classification; manageable overheads.

Interpretation of Vital Signs:

• The negative net current assets indicate that the company’s short-term liabilities exceed its short-term assets, a classic "symptom of distress" in liquidity management. This could impair the ability to pay suppliers or meet other immediate financial obligations without additional cash inflow or financing.
• Positive net assets and equity show the company is not insolvent and has some financial "reserves," but the margin is narrow.
• The fixed asset base is small but appropriate for a roofing company in its early stage, indicating no overinvestment in property or equipment.
• The company’s filing and compliance status is healthy with no overdue accounts or returns, which is a positive governance "vital sign."

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3. Diagnosis

SECURE FIX ROOFING LTD exhibits the financial profile of a young, small-scale enterprise with stable but limited capital resources. The "healthy cash flow" typical of roofing businesses is not yet fully evident, as indicated by a working capital deficit. This situation suggests the company may be relying on credit terms or owner funding to bridge short-term gaps. The single director and majority control by one individual reflect centralized management, which can be agile but also a single point of risk.

The absence of audit requirements and reliance on micro-entity accounts simplifies administration but limits detailed external scrutiny. Given the company’s recent incorporation (Dec 2022) and the micro-entity scale, the small equity base and tight liquidity are typical "symptoms" of a business in its formative financial phase rather than an immediate cause for alarm.

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4. Recommendations

To strengthen financial wellness and transition from fragile liquidity to sustainable health, the company should consider the following:

• Improve Working Capital Management:

  • Negotiate better payment terms with suppliers to extend current liabilities duration.
  • Accelerate receivables collection to boost current assets.
  • Keep tight control on inventory and other current assets to free up cash.

• Build Equity Reserves:

  • Consider modest capital injections if needed to increase the equity buffer.
  • Retain profits within the business rather than distributing dividends at this early stage.

• Monitor Cash Flow Closely:

  • Implement rolling cash flow forecasts to anticipate shortfalls and arrange financing proactively.
  • Explore short-term funding options such as an overdraft or invoice financing if consistent delays in collections arise.

• Maintain Compliance and Governance:

  • Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.
  • Consider appointing an additional director or advisor to broaden oversight as the business grows.

• Plan for Growth:

  • Invest carefully in marketing and customer acquisition to increase turnover while controlling costs.
  • Evaluate fixed asset needs prudently to avoid overextension.

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