Company Number: 13888422

Analysis Date: 2025-07-20 16:38 UTC

Financial Health Assessment of Sutton Glass Ltd as of 28 February 2024

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1. Financial Health Score: D

Explanation:
The company currently shows significant financial distress with negative net assets and net current liabilities. While the business is still operational and supported by its director/shareholder, the financial “vital signs” indicate symptoms of liquidity shortage and capital erosion, resulting in a below-average rating.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	7,414	8,480	Slight decrease indicating limited investment or some asset disposals.
Current Assets	0	5,333	Cash and short-term assets depleted completely, indicating poor liquidity.
Current Liabilities	14,918	11,603	Short-term debts increased, creating immediate repayment pressure.
Net Current Assets	-14,918	-6,270	Negative working capital, meaning current liabilities far exceed current assets; a liquidity red flag.
Net Assets	-7,504	2,210	Net liabilities now exceed assets, indicating capital erosion and a weak balance sheet.
Shareholders Funds	-7,504	2,210	Negative equity suggests the business is technically insolvent on a balance sheet basis.
Number of Employees	1	1	Very small operation, which limits overhead but also scale potential.

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3. Diagnosis

The company’s financial health displays classic "symptoms of distress":

• Liquidity Crisis: The depletion of current assets to zero against rising current liabilities signals a lack of "healthy cash flow". This means the company may struggle to meet short-term obligations such as supplier payments or tax liabilities.
• Capital Erosion: The transition from positive net assets in 2023 to negative in 2024 shows the business is consuming more resources than it is generating, potentially due to losses or director loans.
• Reliance on Director Support: The accounts note that the company is a going concern based on continued financial support from the director/shareholder, indicating external intervention is required to maintain operations.
• Micro-Entity Status: As a micro company, Sutton Glass Ltd benefits from simplified reporting and has limited scale, which might constrain its ability to absorb shocks or invest for growth.
• No Audit and Limited Transparency: Micro-entity accounts are unaudited and simpler, which may mask underlying issues that a thorough audit could reveal.

Overall, Sutton Glass Ltd is in a fragile financial state, analogous to a patient with low blood pressure and weak pulse—functioning but at risk without intervention.

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4. Recommendations

To improve financial wellness and strengthen the company’s balance sheet, consider the following actions:

• Improve Cash Flow Management:

  • Increase efforts to collect receivables promptly.
  • Negotiate extended payment terms with suppliers to ease immediate cash demands.
  • Explore short-term financing options if necessary to plug liquidity gaps.

• Capital Injection:

  • Director or shareholder could inject additional equity or convert loans to equity to restore positive net assets.
  • Alternatively, consider bringing in an investor or partner to bolster funds.

• Cost Control:

  • Review overheads and reduce non-essential expenses to preserve cash.
  • Maintain a lean workforce given current scale.

• Business Development:

  • Increase sales efforts or diversify client base to rebuild revenue and profits.
  • Leverage the company website and local reputation to attract more contracts in glazing and installation.

• Regular Monitoring:

  • Implement monthly financial reviews to detect and respond to financial symptoms early.
  • Prepare for filing the next confirmation statement and accounts on time to avoid penalties.

• Professional Advice:

  • Seek guidance from insolvency practitioners or business advisors if liquidity worsens, to avoid formal insolvency processes.

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