CHARLIE HOLTON MORTGAGE SOLUTIONS LTD

Executive Summary

CHARLIE HOLTON MORTGAGE SOLUTIONS LTD currently operates with stable profitability and solvent balance sheet but faces a declining turnover and shrinking working capital, signaling mild financial stress. Proactive measures targeting revenue growth, cash flow management, and operational efficiency will be critical to improving its financial health and ensuring sustainable business vitality.

CHARLIE HOLTON MORTGAGE SOLUTIONS LTD - Analysis Report

Company Number: 13123929

Analysis Date: 2025-07-20 12:32 UTC

Financial Health Assessment Report: CHARLIE HOLTON MORTGAGE SOLUTIONS LTD

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1. Financial Health Score: C

Explanation:
This micro-entity exhibits modest financial strength with positive net assets and profitability, but displays early signs of operational contraction and lean working capital. It functions like a patient with stable vital signs but showing mild symptoms of stress that require monitoring and targeted care to avoid further deterioration.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Turnover	£36,848	Declined by ~20% from £46,095 in 2023; indicates reduced business activity.
Profit for the Period	£21,847	Healthy positive profit, though reduced from £29,888 in 2023, reflecting lower revenue but still operationally profitable.
Current Assets	£7,231	Reduced from prior year, indicating less cash or receivables on hand; potentially tighter liquidity.
Current Liabilities	£5,124	Decreased liabilities, which is positive but still a notable short-term obligation.
Net Current Assets	£2,107	Positive working capital but reduced from £2,925, showing a shrinking liquidity buffer.
Net Assets / Shareholders’ Funds	£2,108	Positive equity base; company remains solvent with owners’ funds exceeding liabilities.
Staff Costs	£10,013	Stable staff cost base for a single employee, suggesting lean operations.
Tax on Profit	£5,124	Tax obligations in line with profits, indicating taxable profitability.
Fixed Assets	£0	No long-term assets; all capital is likely invested in current operations or intangible assets.

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3. Diagnosis: Financial Condition Overview

The company is currently financially stable but contracting. The "heartbeat" of this business—its turnover—has weakened, falling by approximately 20% compared to the previous year. This symptom may signal reduced client demand or competitive pressure in the mortgage advisory sector. Despite this, the business has maintained profitability, akin to a patient with a manageable but declining health condition.

Working capital remains positive but is shrinking, signaling a reduction in the "cash flow pulse" that sustains day-to-day operations. The absence of fixed assets suggests a low capital expenditure model, typical for service businesses, but also means limited asset backing for borrowing if needed.

The single director and sole shareholder controls the company fully, which centralizes decision-making but may limit external input or capital infusion.

Overall, the financial "vital signs" show a business with enough strength to continue but with clear symptoms of strain that require attention to prevent further weakening.

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4. Recommendations: Prescriptions for Financial Wellness

• Revenue Growth Focus: Investigate causes of turnover decline. Reassess sales and marketing strategies to stimulate customer acquisition and retention. Like increasing oxygen flow, boosting revenue will improve overall vitality.

• Cash Flow Management: Monitor cash inflows and outflows closely. Implement tighter credit control and consider negotiating longer payment terms with creditors to improve net current assets.

• Cost Rationalization: While staff costs are stable, examine all operating expenses for efficiency gains without compromising service quality.

• Diversification of Services: Explore offering complementary financial services or partnerships to broaden income streams and reduce dependence on a single revenue source.

• Capital Structure Review: Although the company has positive equity, consider opportunities for external funding or strategic investment to strengthen financial reserves and support growth initiatives.

• Regular Financial Monitoring: Set up monthly financial "check-ups" to track key metrics and respond proactively to any worsening symptoms.

• Succession and Governance Planning: As the business is closely held and managed, consider strategies to bring in advisory support or additional expertise to enhance decision-making and risk management.

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