SV CARPENTRY & BUILDING SERVICES LTD

Executive Summary

SV Carpentry & Building Services Ltd shows solid financial health with strong liquidity, positive net assets, and a steady growth in equity. While there is a slight increase in current liabilities, particularly tax-related, the company’s overall financial condition remains stable and resilient. Careful management of cash flow and liabilities will ensure continued financial wellness and operational stability.

SV CARPENTRY & BUILDING SERVICES LTD - Analysis Report

Company Number: 13036513

Analysis Date: 2025-07-29 19:13 UTC

Financial Health Assessment: SV CARPENTRY & BUILDING SERVICES LTD

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1. Financial Health Score: B

Explanation:
SV Carpentry & Building Services Ltd demonstrates generally sound financial health with a solid equity base and good liquidity. The company maintains positive net assets and a healthy working capital position, indicating it can meet short-term obligations comfortably. However, there are early warning signs such as a reduction in net current assets and the presence of significant tax and social security creditors that require monitoring. The "B" grade reflects a stable but cautious outlook.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Net Assets (Equity)	72,180	Healthy and improving shareholder equity, indicating accumulated retained profits and value.
Net Current Assets	53,193	Strong working capital position; the business has sufficient liquid assets to cover short-term debts.
Cash at Bank	87,300	Very healthy cash reserves, a vital sign of liquidity and operational flexibility ("healthy cash flow").
Current Liabilities	46,207	Manageable short-term obligations though increased from prior year; careful monitoring required.
Long-term Liabilities	8,832	Reduced significantly from previous year, indicating debt repayment or restructuring ("improving credit profile").
Debtors	12,100	Moderate trade receivables; timely collection is key to maintain cash flow.
Fixed Assets	27,819	Tangible and intangible assets are reasonable for size and nature of business.
Share Capital	2	Minimal share capital typical for small private companies.

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3. Diagnosis

Financial Vital Signs:
SV Carpentry & Building Services Ltd exhibits the "healthy pulse" of a small but steadily growing business. The increase in net assets from £40,948 in 2022 to £72,180 in 2023 signals consistent profitability and retention of earnings, a positive "heartbeat" for business value.

Symptoms of Potential Stress:

• The net current assets decreased from £75,947 in 2022 to £53,193 in 2023, suggesting a slight weakening in short-term liquidity buffer.
• Current liabilities jumped from £28,993 to £46,207, primarily driven by higher taxation and social security creditors (£39,305 in 2023 vs £23,309 in 2022). This could indicate timing issues in tax payments or increased tax liabilities, which may put strain on cash flow if not managed carefully.
• The reduction of long-term creditors from £68,455 to £8,832 is a positive sign, indicating the company is reducing its longer-term debt burden, improving financial stability.

Underlying Condition:
The company is in overall good financial health with a robust capital structure and positive net assets. The large cash balance and positive working capital act as strong "immune system" factors, providing resilience against short-term shocks. However, the rising current liabilities need attention to avoid any "symptoms" of liquidity distress.

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4. Recommendations

1. Cash Flow Management:
   Maintain and monitor the cash flow closely, especially focusing on timely settlement of tax and social security liabilities to avoid penalties or cash crunches.

2. Debtor Collection:
   Strengthen credit control procedures to ensure prompt collection of trade debtors, maintaining cash inflows and preventing working capital strain.

3. Liability Monitoring:
   Keep a close watch on current liabilities growth and negotiate payment terms where possible to smooth out cash outflows.

4. Asset Utilisation:
   Review fixed assets for efficiency; consider disposals or upgrades that optimize operational capability without tying up excessive capital.

5. Profit Retention:
   Continue to retain profits to build equity and provide a cushion for future investments or downturns.

6. Tax Planning:
   Engage in proactive tax planning to manage liabilities and avoid spikes in tax-related payables.

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