Company Number: 15303805

Analysis Date: 2025-07-29 13:22 UTC

Financial Health Assessment Report: CAFE HANOK LTD

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1. Financial Health Score: D

Explanation:
The company shows early-stage operation characteristics with significant financial strain. Negative net assets and shareholders’ funds indicate the company is currently "under the weather" financially. While the company is not insolvent, these "symptoms of distress" warrant close monitoring and corrective action to restore financial vitality.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	26,575	Tangible long-term asset base present, a positive sign of investment in operational resources.
Current Assets	3,735	Limited liquid resources to cover immediate obligations; a potential warning sign.
Current Liabilities	1,214	Short-term debts are relatively low, indicating manageable current obligations.
Net Current Assets	2,521	Positive working capital, suggesting the company can meet short-term liabilities comfortably.
Creditors > 1 year	39,071	Substantial long-term liabilities, representing a financial burden and risk to solvency.
Net Assets (Total Equity)	-9,975	Negative net worth indicates liabilities exceed assets, a critical symptom of financial stress.
Shareholders’ Funds	-9,975	Reflects accumulated losses or capital shortfall; company is technically insolvent on paper.
Average Employees	4	Small workforce consistent with micro entity status; manageable overhead.

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3. Diagnosis

Underlying Financial Health:
CAFE HANOK LTD, incorporated in late 2023, is in its infancy and classified as a micro-entity. The negative net assets and shareholders’ funds reveal that the company has a "financial deficit" — its liabilities surpass its assets by £9,975. This condition is akin to a patient with a low blood count, indicating the company’s capital base is weak and it is reliant on external funding or future profits to "recover."

Positive net current assets (£2,521) show a "healthy pulse" in liquidity, meaning the company can currently meet its short-term obligations without distress. However, the large amount of creditors due after more than one year (£39,071) is a "chronic condition" that could strain cash flows in the medium to long term if not managed effectively.

The absence of audit requirements and limited financial history constrain a full diagnostic picture, but these figures suggest the company is in a vulnerable startup phase, with a need for capital infusion or operational improvements to avoid deterioration.

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4. Recommendations

To improve financial wellness and strengthen the company’s "financial immune system," the following actions are advised:

• Capital Injection: Consider additional equity investment from existing or new shareholders to restore positive net asset value, improving solvency and creditworthiness.
• Debt Management: Negotiate with creditors to restructure or extend long-term liabilities, easing future cash flow pressure.
• Cash Flow Monitoring: Implement rigorous cash flow forecasting to maintain healthy liquidity and avoid short-term "cash flow shocks."
• Profitability Focus: Accelerate efforts to increase revenue and control costs, aiming to generate positive retained earnings to rebuild shareholders’ funds.
• Regular Financial Reviews: Conduct periodic financial health checks to detect early "symptoms" of distress and respond proactively.
• Compliance and Reporting: Ensure timely filing of accounts and confirmation statements to maintain good standing and avoid regulatory penalties.

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