ULLSWATER CONSTRUCTION LTD

Executive Summary

Ullswater Construction Ltd shows a healthy financial foundation with positive liquidity and solvency in its first year of operation. While profitability data is unavailable due to micro-entity reporting exemptions, the balance sheet indicates no immediate financial distress. Continued focus on cash flow management and internal profitability tracking will support sustainable growth and long-term financial wellness.

ULLSWATER CONSTRUCTION LTD - Analysis Report

Company Number: 15113693

Analysis Date: 2025-07-29 19:49 UTC

Financial Health Assessment for Ullswater Construction Ltd

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1. Financial Health Score: B

Explanation:
Ullswater Construction Ltd, a micro-entity incorporated in September 2023, demonstrates a solid financial footing for its early stage. Its balance sheet shows positive net current assets and net assets, indicating a healthy liquidity position and positive equity. However, limited financial history and lack of profit and loss details constrain a full assessment. The company’s financial health is good but still in the early “growth and establishment” phase, hence a score of B reflects generally healthy but with room for growth and monitoring.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	22,926	Healthy short-term resources available to cover liabilities.
Current Liabilities	9,950	Short-term obligations that must be met within a year.
Net Current Assets	12,976	Positive working capital, a sign of liquidity and operational health.
Total Assets Less Current Liabilities	12,976	Indicates total resources after covering short-term debts.
Net Assets / Shareholders’ Funds	12,412	Positive equity shows the company is solvent at this stage.
Account Category	Micro	Small-scale business with simplified reporting.
Company Age	~1 year	Early lifecycle, typical for startups to have limited financial history.

Interpretation:
The company displays "healthy cash flow" signals in its balance sheet with more current assets than current liabilities, ensuring it can cover its immediate debts. Positive net assets confirm no signs of financial distress currently. However, absence of profit and loss data means we cannot evaluate profitability or cash generation from operations yet.

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3. Diagnosis

• Liquidity and Solvency: The company has a comfortable liquidity cushion (net current assets £12,976) and positive net assets (£12,412), indicating no immediate cash flow issues or solvency concerns. The balance sheet is “stable and strong” for a start-up phase company.
• Profitability and Operating Performance: Not disclosed; hence, difficult to evaluate operating efficiency or margins. This is a common “diagnostic blind spot” in micro-entity accounts filing only balance sheet data.
• Business Lifecycle: Being less than a year old, the company is in the “establishment phase” with expected limited historical performance data. Early positive equity and liquidity are good “vital signs” for future growth.
• Governance: Single director with full ownership and control, which can be both a strength (clear decision-making) and a risk (lack of diversity in oversight).

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4. Recommendations

• Maintain Strong Cash Flow Monitoring: Keep a close eye on cash inflows and outflows to sustain the healthy working capital position. Implement regular cash flow forecasts to anticipate any shortfalls.
• Prepare for Profit & Loss Reporting: Although exempt currently, consider preparing internal profit and loss statements to monitor operational performance and identify areas for margin improvement.
• Build Financial Resilience: As the company grows, aim to build retained earnings and increase net assets to buffer against future business risks.
• Implement Governance Practices: Consider adding advisory support or expanding the management team to diversify oversight as business complexity increases.
• Timely Filing and Compliance: Continue to ensure all statutory filings (accounts and confirmation statements) are submitted on time to avoid penalties.
• Strategic Planning: Leverage positive early-stage financial health to pursue growth opportunities carefully, maintaining balance between investment and liquidity.

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