24HR INVESTMENTS LTD

Executive Summary

24HR INVESTMENTS LTD shows a strong financial foundation with significant fixed assets and positive working capital, indicating stable financial health for a micro-entity in its early development stage. While the company benefits from a solid equity position and asset base, focus should be placed on cash flow management, profitability tracking, and governance improvements to sustain and enhance its financial wellness as it grows.

24HR INVESTMENTS LTD - Analysis Report

Company Number: 14029857

Analysis Date: 2025-07-20 17:09 UTC

Financial Health Assessment for 24HR INVESTMENTS LTD

---

1. Financial Health Score: B

Explanation:
The company demonstrates a solid foundation with strong net assets and positive working capital, indicating a generally healthy financial state for a micro-entity in its early stage. However, the lack of detailed profitability and cash flow information, coupled with the very recent establishment (incorporated in 2022) and limited operational history, suggests some caution. The score B reflects a financially stable position but with room for improvement and monitoring.

---

2. Key Vital Signs

Metric	2024 Figure	Interpretation
Fixed Assets	£360,000	Significant investment in long-term assets, likely real estate. Indicates capital strength but also asset lock-in.
Net Current Assets	£101,995	Positive working capital ("healthy cash flow buffer"), suggesting the company can cover short-term obligations comfortably.
Total Net Assets	£462,095	Strong net asset base relative to initial £100 in 2023, showing growth and capital accumulation.
Shareholders' Funds	£462,095	Equity fully supports the asset base, implying no evident over-reliance on debt financing.
Employee Count	1	Micro-entity scale with minimal staff, consistent with the business profile.
Company Age	~2 years	Early-stage company, so financial patterns may still be stabilizing.

---

3. Diagnosis

"Vital signs" analysis:
24HR INVESTMENTS LTD shows a positive balance sheet with considerable fixed assets (£360k) and net current assets over £100k. This suggests the company has invested heavily in its core assets — consistent with its SIC codes indicating real estate management, letting, and trading. The increase in net assets from £100 in 2023 to over £462k in 2024 is a strong sign of capital injection or asset acquisition, which is typical for a company establishing its operating base.

"Symptoms" and underlying health:
The company has a healthy "cash flow buffer" (working capital) to meet short-term liabilities, reducing the risk of liquidity distress. The absence of liabilities or negative net assets suggests no immediate financial distress. The single director and sole owner have full control, which simplifies decision-making but could also concentrate risk. The micro-entity status means fewer regulatory burdens but also less transparency on profitability and cash flow.

Risks and considerations:

• Lack of detailed profit and loss data means we cannot assess operational profitability or recurring revenue streams.
• Heavy reliance on fixed assets (likely property) may reduce liquidity flexibility.
• Early-stage firms often face volatility; continuous monitoring is essential.
• Single director/owner concentration can create governance risks.

---

4. Recommendations

1. Cash Flow Monitoring:
   Maintain rigorous tracking of cash inflows and outflows to ensure liquidity remains "healthy" and to avoid the symptom of cash crunches common in asset-heavy businesses.

2. Profitability Reporting:
   Consider preparing more detailed internal management accounts to monitor operational profitability and expense control, beyond micro-entity filings.

3. Risk Diversification:
   Explore diversifying income streams or asset types to reduce risk concentration inherent in property management and investment.

4. Governance Practices:
   Strengthen governance by possibly appointing an additional director or advisor to provide broader oversight, which can enhance decision quality and risk management.

5. Growth Strategy:
   With a strong capital base, evaluate strategic growth opportunities carefully to leverage assets while maintaining financial stability.

---