Company Number: 14112087

Analysis Date: 2025-07-29 15:06 UTC

Financial Health Assessment of Clearhaven Enterprises Limited

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1. Financial Health Score: C

Explanation:
Clearhaven Enterprises Limited exhibits some characteristics of a young and developing business. While it maintains positive net assets and modest shareholder equity, the company is showing signs of liquidity strain, reflected in current liabilities exceeding current assets (negative net current assets). This points to a cautious financial health grade of C — stable but with potential liquidity concerns and a need for careful cash flow management.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Cash at Bank	4,919	Low but improving cash reserves; essential for meeting short-term obligations.
Current Liabilities	6,599	Short-term debts higher than liquid assets; potential liquidity "symptom of distress."
Net Current Assets	-1,680	Negative working capital indicates possible short-term cash flow difficulties.
Total Assets Less Current Liabilities	1,970	Positive, showing that assets exceed immediate debts, a sign of solvency.
Shareholders’ Funds	1,970	Equity base is stable but small; company is still in early growth phase.
Tangible Fixed Assets	3,650	Investments in equipment increasing, indicating business growth or capacity building.
Average Number of Employees	2	Small workforce, consistent with a micro to small enterprise size.

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3. Diagnosis

Clearhaven Enterprises Limited is a young private limited company engaged in management consultancy (SIC 70229), incorporated in May 2022. The company has maintained active status without overdue filings, indicating compliance with statutory obligations and good governance practices.

Liquidity and Working Capital:
The company’s working capital — the "pulse" of short-term financial health — is negative (£-1,680), meaning current liabilities exceed current assets. This "symptom" suggests the company might struggle to cover short-term debts with available liquid resources, potentially requiring external financing or improved cash flow management.

Solvency and Capital Structure:
Despite liquidity concerns, the company’s total assets less current liabilities and shareholders’ funds remain positive (£1,970), indicating it is solvent and has a stable equity base. The small but growing tangible fixed assets demonstrate investment in operational capacity, which could support future revenue growth.

Profitability:
Detailed profit and loss figures are not provided, but retained earnings (profit and loss account) have increased modestly year-on-year, from £1,631 in 2023 to £1,870 in 2024, signaling the company is generating some profits or at least retaining earnings.

Operational Growth:
The increase in average employees from 1 to 2 and fixed asset additions show cautious growth and investment, typical of a business transitioning from startup phase.

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4. Recommendations

To improve Clearhaven Enterprises Limited’s financial wellness and ensure a healthy cash flow, consider the following:

1. Enhance Liquidity Management:

   • Monitor and manage receivables and payables closely to improve cash conversion cycles.
   • Negotiate longer payment terms with creditors where possible to ease short-term cash pressures.
   • Maintain a cash buffer to avoid liquidity crunches.

2. Strengthen Working Capital:

   • Explore short-term financing options (e.g., overdrafts or invoice financing) to bridge any immediate cash flow gaps.
   • Review current liabilities and prioritize payment schedules to avoid late payments.

3. Focus on Profitability:

   • Continue tracking profitability trends closely despite limited data; ensure operational costs remain controlled as the company scales.
   • Evaluate pricing strategies and client mix to improve margins.

4. Investment and Growth:

   • Continue investing prudently in tangible assets that support revenue generation without overextending the company’s cash resources.
   • Consider strategic hiring aligned with business growth and profitability targets.

5. Regular Financial Monitoring:

   • Implement monthly financial reviews to detect early symptoms of financial distress.
   • Use cash flow forecasting tools to anticipate funding needs proactively.

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