VESTIS CONTRACT FLOORING LIMITED

Financial Health Score: B-

Explanation: The patient is fundamentally stable and possesses a robust immune system (strong liquidity), but is currently experiencing a mild relapse after a remarkable recovery. The recent drop in net assets and an administrative "fever" (overdue confirmation statement) prevent a higher grade, but the overall condition is far from critical.

1. Key Vital Signs

• Blood Pressure (Liquidity Ratio): 1.89 — Healthy. With Current Assets of £140,520 against Current Liabilities of £74,047, the company has nearly £1.90 in short-term assets for every £1 of short-term debt. This indicates healthy cash flow and a strong ability to ward off immediate financial shock.
• Cholesterol Levels (Leverage): 41.5% — Normal. Total Liabilities (£74,047) make up roughly 41.5% of Total Assets (£178,138). The business is not clogged with excessive debt and maintains a healthy equity base.
• Weight Fluctuation (Net Assets): Down £16,582 — Concerning. Net assets dropped from £120,673 in 2024 to £104,091 in 2025. This represents a noticeable loss of financial "weight," indicating that the business operated at a loss during this period, bleeding equity.
• Bone Density (Fixed Assets): Down £11,861 — Slight Weakening. Fixed assets dropped from £49,479 to £37,618. This suggests the company is consuming its long-term assets (through depreciation) without replacing them, which could impact future operational capacity.
• Pulse (Workforce): Stable at 7 BPM (Employees). The workforce has remained consistent, indicating no drastic restructuring or hemorrhaging of talent.

2. Symptoms Analysis

Looking beneath the skin, the financial data reveals a fascinating medical history:

• The 2022 Heart Attack: In 2022, the company suffered a severe event. Net assets plummeted from £128,205 (2021) to just £20,154. This massive drop in equity suggests the business took a significant hit—likely a major bad debt, a loss-making contract, or pandemic-related complications that finally manifested on the balance sheet.
• The 2023-2024 Rehabilitation: The patient showed incredible resilience. By 2024, net assets had rebounded to £120,673, effectively regaining all the lost ground from the 2022 crisis. Cash reserves in 2023 were also incredibly strong (£93,956), acting as a robust immune response.
• The 2025 Relapse: The latest 2025 figures show the patient has stumbled again. The £16,582 drop in net assets means the company swallowed a loss this year. However, unlike the 2022 crisis, current liabilities actually decreased slightly (from £76,492 to £74,047), meaning this loss was funded by equity, not by taking on dangerous short-term debt.
• Administrative Fever: The Confirmation Statement is overdue. While not a financial symptom, this is a corporate governance fever that suggests the directors may be distracted or neglecting routine corporate hygiene.

3. Diagnosis

Stable but requiring monitoring.

Vestis Contract Flooring Limited is a survivor. The business endured a near-fatal drop in equity in 2022 but demonstrated excellent recuperative powers by 2024. However, the recent 2025 financial year shows symptoms of a relapse, with the business operating at a loss that has eroded the equity base.

The good news is that the company's "immune system"—its liquidity—is handling the strain well. The drop in net assets was not masked by dangerous levels of new debt; instead, current liabilities actually shrank. The patient is managing its debts well, but the underlying business operations are currently failing to generate a profit.

4. Recommendations

To restore the patient to peak financial wellness, the following prescription is advised:

1. Cure the Administrative Fever: Immediately file the overdue Confirmation Statement. Late filing attracts unwanted attention from regulators and can result in financial penalties, acting as an unnecessary complication to the company's health.
2. Investigate the Bleeding: The director must diagnose exactly why 2025 resulted in a £16,582 loss. Was it a contraction in revenue, an increase in cost of sales, or an unexpected one-off expense? Identifying the root cause is essential to preventing further equity erosion in 2026.
3. Rebuild Bone Density: The drop in fixed assets suggests the company may be running down its equipment. As a flooring contractor, physical assets (vehicles, equipment) are vital. Management should ensure they are setting aside enough capital to replace aging assets before they cause operational blockages.
4. Maintain the Liquid Diet: The current ratio of 1.89 is excellent. Maintain discipline with creditors and do not let current liabilities creep up. The strong cash position is the primary defense against any future market downturns.