TC CARPENTRY LIMITED

Executive Summary

TC Carpentry Limited maintains a stable financial status with positive liquidity and net assets, typical for a small joinery installation business. While current financial indicators do not show distress, a slight reduction in cash reserves warrants improved cash flow management to sustain financial health. Overall, the company is in a sound position but should focus on strengthening cash flow and profitability to ensure long-term resilience.

TC CARPENTRY LIMITED - Analysis Report

Company Number: 13943359

Analysis Date: 2025-07-29 13:43 UTC

Financial Health Assessment for TC Carpentry Limited

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1. Financial Health Score: B

Explanation:
TC Carpentry Limited shows a stable but modest financial position with positive net current assets and shareholders' funds. Despite operating a micro/small scale business, they maintain a positive working capital and cash reserves above short-term liabilities, indicating generally healthy liquidity. However, the slight decline in cash and net current assets over the last year signals the need for cautious monitoring and improved cash flow management to avoid symptoms of financial distress.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Cash at Bank	25,933	Adequate cash reserve to cover immediate obligations; slight decrease from previous year.
Current Liabilities	21,383	Short-term debts are manageable and less than cash reserves, indicating good liquidity.
Net Current Assets	4,550	Positive working capital showing the company can cover short-term liabilities without stress.
Shareholders' Funds	4,550	Represents the net worth; modest but positive, showing retained earnings and capital intact.
Employee Count	2	Small team consistent with micro/small business profile, manageable operational scale.

Interpretation:

• The company has a "healthy cash flow" analogue by maintaining cash balances exceeding current liabilities, a critical "vital sign" for operational sustainability.
• The slight reduction in cash and net current assets from last year is a "symptom" that requires attention to prevent possible liquidity tightening.
• The consistency in equity and absence of debt beyond current liabilities suggests no "chronic illness" of overleverage or insolvency risk at present.

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3. Diagnosis

TC Carpentry Limited exhibits characteristics of a financially stable micro-business with a positive net working capital and solid liquidity position. The company’s balance sheet shows no signs of significant financial distress such as negative equity or high short-term debt burdens. The "symptom" of shrinking cash reserves from £30,914 to £25,933, however, indicates that cash inflows and outflows should be closely monitored to avoid future cash flow stress.

The company’s small size and limited employee base imply a lean operational structure, which is typical and appropriate for a joinery installation business at this scale. Directors maintain control over the business, with both significant shareholders actively involved, which can be positive in terms of decision-making agility.

No overdue filings or compliance issues are apparent, which is a good sign of corporate governance and operational discipline.

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4. Recommendations

• Enhance Cash Flow Management:
  Implement rigorous cash flow forecasting and cost control measures to reverse the downward trend in cash reserves. This will help ensure the company maintains a "healthy pulse" in liquidity and can meet upcoming obligations without strain.

• Monitor Working Capital:
  Since net current assets are modest, the business should aim to optimize receivables and payables cycles, avoiding late payments or stretched credit terms that could exacerbate liquidity pressure.

• Build Financial Buffers:
  Consider setting aside a contingency fund or credit facility to cover unexpected expenses or downturns, akin to maintaining a financial immune system against shocks.

• Review Profitability and Growth Opportunities:
  With limited data on turnover and profits (not disclosed in accounts), directors should focus on improving margins and exploring growth avenues to strengthen retained earnings and shareholder funds.

• Maintain Compliance and Governance:
  Continue timely filing of accounts and confirmation statements to avoid penalties or regulatory "infections" that could impair the company’s reputation or creditworthiness.

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