HALVAR LTD

Executive Summary

HALVAR LTD demonstrates a generally healthy financial position with steady asset growth and solid working capital. The company’s financial “vital signs” reflect liquidity strength and increasing equity, but rising short-term liabilities and lack of operational profit data suggest areas for closer monitoring. With prudent management of liabilities and improved financial transparency, HALVAR LTD is well-positioned for sustainable growth in its real estate activities.

HALVAR LTD - Analysis Report

Company Number: 12733722

Analysis Date: 2025-07-29 19:00 UTC

Financial Health Assessment for HALVAR LTD (as at 31 July 2024)

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1. Financial Health Score: B

Explanation:
HALVAR LTD shows solid financial footing with steady growth in net assets and positive working capital over the last several years. The company’s balance sheet exhibits healthy net current assets and increasing fixed assets, indicating investment in long-term resources. However, the absence of profit and loss details and zero employees may warrant caution, preventing a top-tier grade.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	134,229	109,267	Increasing fixed assets suggest asset growth and capital investment. Healthy sign.
Current Assets	219,956	115,512	Strong growth in short-term assets, mostly likely cash/debtors, supporting liquidity.
Current Liabilities	177,125	87,504	Current liabilities increased substantially; watch for short-term obligations.
Net Current Assets	54,521	55,314	Positive and stable working capital — a good indicator of liquidity health.
Net Assets (Equity)	187,550	163,581	Steady increase in net assets, reflecting growing shareholder value and retained earnings.
Share Capital	1.00	1.00	Minimal share capital, common for micro-entities, but limited equity buffer.
Employees	0	0	No employees reported — possibly a holding or investment entity.

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3. Diagnosis

• Healthy cash flow indicators: The company maintains a positive net current asset position (£54,521), which means it has more short-term assets than liabilities — a vital sign of liquidity and ability to meet obligations without stress.
• Asset growth: Fixed assets have nearly doubled since 2020, indicating investment in long-term resources likely related to its real estate activities. This is a positive "growth pulse."
• Rising current liabilities: The jump in current liabilities from £87,504 to £177,125 is a symptom that requires monitoring. While current assets also increased, the liability growth suggests potential pressure on short-term cash flow or increased borrowing.
• Stable equity: An upward trend in net assets and shareholders’ funds signals retained profits or asset revaluations, highlighting overall financial resilience.
• Micro-entity simplicity: The company benefits from audit exemption and simplified reporting, but the lack of profit and loss information limits a full diagnostic on operational profitability.
• No employees: This could indicate a passive holding company or a streamlined operation, which reduces overhead but also limits operational scale.

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4. Recommendations

• Monitor current liabilities closely: The increase in short-term debts is a "symptom of stress" that could affect liquidity if not managed. Ensure timely collections and control payable schedules.
• Cash flow management: Maintain a healthy and steady cash conversion cycle. Consider cash flow forecasting to anticipate any liquidity crunch.
• Profit and loss transparency: Even if not required by regulation, prepare internal P&L statements to get better insight into operational performance and profitability.
• Review investment strategy: Since fixed assets are growing, confirm that these investments are generating adequate returns or rental income in line with the company’s real estate business.
• Consider equity strengthening: Although micro-entities often operate with minimal share capital, an injection of equity or retained earnings can improve the capital buffer against downturns.
• Succession and control planning: With two significant controllers (as trusts), ensure clear governance and succession plans to avoid future operational disruptions.
• Digital presence and communication: The company website currently has limited content. Enhancing the site could support business development, stakeholder communication, and transparency.

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