Company Number: 14311856

Analysis Date: 2025-07-29 20:35 UTC

Financial Health Assessment: TB SERVICES LTD (Window Cleaning Services)
Assessment Date: August 31, 2024

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1. Financial Health Score: C (Fair)

Explanation:
TB SERVICES LTD shows some positive signs such as increasing net assets and shareholder funds, indicating accumulated retained earnings or capital injections. However, persistent negative net current assets (working capital deficit) and significant short-term liabilities compared to current assets reveal liquidity stress. The company is not in immediate danger, but symptoms of cash flow strain and reliance on long-term debt to finance operations warrant caution.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	38,479	Stable investment in long-term assets, slightly decreased but consistent over 2 years.
Current Assets	10,112	Cash, receivables, and inventory available in short term; modest but slightly improved.
Current Liabilities	16,351	Debts due within one year, slightly increased, exceeding current assets.
Net Current Assets	-6,239	Negative working capital, indicating a liquidity gap—company may struggle to meet short-term obligations.
Creditors (Long Term)	14,444	Long-term liabilities have decreased significantly from prior year, a positive sign.
Net Assets	17,796	Equity value has increased, reflecting overall growth in company value.
Average Employees	2	Small workforce consistent with micro entity size.

Additional Notes:

• The company falls under the Micro account category, with simplified reporting and minimal complexity.
• No overdue filing or compliance issues, indicating good administrative health.
• The company is active and not undergoing liquidation or insolvency procedures.

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3. Diagnosis: Financial Health Overview

Liquidity Symptoms:
The company exhibits "symptoms of distress" in its liquidity position. Negative net current assets mean current liabilities exceed current assets by £6,239. This suggests TB SERVICES LTD may face challenges in covering short-term debts from readily available resources, potentially relying on additional financing or delayed payments.

Solvency Condition:
Despite liquidity strain, the company’s solvency remains intact. The increase in net assets from £10,947 (2023) to £17,796 (2024) indicates that the business’s total assets exceed total liabilities by a comfortable margin. Reduction in long-term creditors by nearly £10,000 is a positive sign, showing some debt repayment or refinancing.

Operational Health:
The stable fixed asset base and small increase in current assets with a slight rise in liabilities suggest ongoing operations are steady but tight. The company employs only 2 people, typical for a micro business, which limits overhead costs. However, reliance on borrowed funds (both short and long term) indicates the company should monitor cash flow carefully.

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4. Recommendations: Prescriptions for Financial Wellness

• Improve Working Capital Management:
  Actively manage receivables and payables to reduce the working capital gap. Negotiate better payment terms with suppliers and encourage faster collection from customers to improve liquidity.

• Build Cash Reserves:
  Aim to increase cash or easily liquidated current assets to cover at least short-term liabilities. This can be through retained earnings, capital injection, or short-term financing with favorable terms.

• Debt Restructuring:
  Consider negotiating with creditors to extend payment periods or convert short-term liabilities into longer-term debt to ease immediate liquidity pressure.

• Monitor Cost Control:
  Keep operating expenses tightly controlled to preserve cash flow, especially given the small scale of operations.

• Financial Planning:
  Prepare regular cash flow forecasts to anticipate liquidity needs and avoid last-minute financing stress. Early detection of cash shortages can prevent distress.

• Explore Growth Opportunities Cautiously:
  While the company has grown equity, any expansion should be carefully evaluated to avoid exacerbating liquidity problems.

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