Company Number: 12781910

Analysis Date: 2025-07-29 14:14 UTC

Financial Health Assessment for WINDOW & DOOR SUPPLIES LTD

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1. Financial Health Score: B

Explanation:
WINDOW & DOOR SUPPLIES LTD demonstrates a solid financial position with strong net current assets and positive shareholders' funds growth year-over-year. The company’s balance sheet shows healthy liquidity and equity, but the small size and limited asset base typical of a micro-entity means there is moderate exposure to financial risk, especially given recent director turnover. The score “B” reflects a generally stable financial condition with room for improvement in operational transparency and governance continuity.

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2. Key Vital Signs

Metric	2023 Value	2022 Value	Interpretation
Fixed Assets	£5,722	£10,903	Slight reduction, indicating possible asset disposals or low reinvestment.
Current Assets	£260,787	£252,953	Healthy increase suggesting good cash and receivables management.
Current Liabilities	£78,831	£116,166	Significant reduction, improving short-term solvency.
Net Current Assets	£181,956	£136,787	Strong working capital, indicating liquidity "pulse" is strong.
Shareholders' Funds (Equity)	£187,678	£147,690	Positive growth, showing retained earnings or capital input.
Employee Count	2	2	Stable workforce size, consistent with micro business scale.
Account Category	Micro	Micro	Simplified reporting but limits detail available.

Interpretation of Vital Signs:
The company has a "healthy cash flow" profile as evidenced by rising current assets and shrinking current liabilities, meaning it can comfortably meet short-term obligations. The net assets and shareholders’ funds growth indicate the company is accumulating value, a good sign of business health. The reduction in fixed assets may signify limited investment in long-term resources, a symptom that should be monitored for operational sustainability.

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3. Diagnosis

WINDOW & DOOR SUPPLIES LTD appears financially stable with strong liquidity and growing equity, which are key indicators of a well-functioning business "heart." The company operates in a niche glazing sector, and its micro-entity status means it has simplified financial filings, limiting transparency into profitability or cash flow specifics.

However, the resignation of both original directors and appointment of a new controlling shareholder/director (Mr. Nicholas John Bastow) in 2023 signals a governance "shift" that could be a symptom of strategic realignment or restructuring. This change in leadership is a critical factor to watch as it may impact company direction and risk profile.

The company’s reliance on a small employee base and modest fixed assets may constrain growth potential, but the strong net current assets suggest the business is managing its working capital efficiently. No signs of financial distress, such as overdue filings or negative equity, are present.

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4. Recommendations

• Strengthen Governance and Continuity: Ensure the new director has a clear strategic plan and consider appointing additional directors or advisors to enhance governance and oversight.

• Monitor Asset Investment: Investigate reasons behind the decline in fixed assets and assess whether reinvestment is needed to support operational capacity and future growth.

• Maintain Working Capital Vigilance: Continue prudent management of receivables and payables to maintain strong liquidity and avoid any cash flow "arrhythmias."

• Enhance Financial Reporting: Although micro-entity reporting suffices legally, consider preparing more detailed internal financial reports to better track profitability and operational efficiency.

• Plan for Growth: Explore opportunities for scaling operations, possibly through increased capital investment or expanding the employee base, while maintaining balance sheet health.

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