SHARP DESIGN AND BUILD LIMITED

Executive Summary

Sharp Design and Build Limited exhibits a stable financial foundation with positive net assets and working capital, typical for a newly formed micro-entity. The company currently operates without signs of financial distress and maintains good compliance practices. Focused efforts on cash flow management, client diversification, and strategic growth planning will support continued financial health and resilience.

SHARP DESIGN AND BUILD LIMITED - Analysis Report

Company Number: 15022123

Analysis Date: 2025-07-29 13:41 UTC

Financial Health Assessment for SHARP DESIGN AND BUILD LIMITED

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1. Financial Health Score: B

Explanation:
Sharp Design and Build Limited demonstrates a sound financial position for a newly incorporated micro-entity in the joinery installation sector. The company shows a positive net asset base with healthy working capital, indicating initial financial stability. The absence of debt beyond current liabilities and the shareholder equity covering total assets reflect prudent financial management. However, the limited operating history and relatively modest asset base temper the score to a B, suggesting room for growth and strengthening.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	22,258	Investment in long-term resources (tools, equipment) essential for business operations.
Current Assets	31,123	Liquid resources including cash and receivables, indicating available funds for short-term needs.
Current Liabilities	23,086	Obligations due within one year; manageable given current assets.
Net Current Assets (Working Capital)	8,037	Positive working capital indicates the company can cover short-term debts comfortably.
Total Assets less Current Liabilities	30,295	Indicates overall net asset position after settling short-term liabilities.
Shareholders’ Funds	30,295	Equity held by owner, representing company’s net worth; strong for a new entity.
Average Employees	1	Micro-entity with lean operations; manageable overhead costs.
Filing Status	Up to date	No overdue filings, indicating compliance and good governance.

Interpretation:
The "vital signs" show that the company has a stable financial base with sufficient liquidity and equity. The positive net current assets ("healthy cash flow") suggest the company is not experiencing immediate liquidity stress. The balance sheet structure is typical for a start-up micro-business, with equity fully supporting the assets and no long-term liabilities.

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3. Diagnosis: Financial Condition Overview

Sharp Design and Build Limited is in a healthy financial state for a start-up company within its first operational year. The balance sheet ("body structure") is sound, with no signs of financial distress such as negative equity or working capital deficits ("symptoms of distress"). The company’s ability to meet its short-term obligations from current assets indicates good operational liquidity ("healthy circulation of funds").

However, the company's small scale and limited operational history mean it is still vulnerable to market fluctuations, delays in receivables, or unexpected expenses. The sole director and shareholder, Mr Dean Sharp, holds full control, implying decision-making agility but also concentration risk.

The absence of audit requirements under the micro-entity exemption is appropriate, yet this means less external scrutiny ("health check-up") which could be a factor to revisit as the company grows.

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4. Recommendations: Actions to Improve Financial Wellness

• Build Cash Reserves: Aim to increase current assets, particularly cash, to create a buffer against unforeseen expenses or seasonal fluctuations in business volume.
• Diversify Customer Base: To reduce business risk, expand the client portfolio to avoid dependency on limited contracts.
• Monitor Working Capital: Maintain positive net current assets to ensure ongoing liquidity; consider negotiating payment terms with suppliers and clients to optimize cash flow.
• Plan for Growth: Develop a strategic plan for scaling operations, including potential hiring, investment in tools, and marketing efforts.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain reputational health.
• Consider Financial Reporting: As the company grows, evaluate whether to move beyond micro-entity accounting to provide more detailed financial insights for lenders or investors.
• Implement Risk Management: Establish basic risk controls (insurance, contracts) to protect against operational risks inherent in the construction/joinery sector.

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