HAMBERLEY CARE FV (HINDHEAD) LIMITED

Executive Summary

Hamberley Care FV (Hindhead) Limited is in an early-stage start-up phase with negative net assets and working capital deficits indicating liquidity and capital challenges. Large off-balance-sheet lease obligations and contingent liabilities add financial strain. Immediate focus on cash flow improvement, cost control, and capital strengthening is essential to improve financial wellness and ensure sustainable operations.

HAMBERLEY CARE FV (HINDHEAD) LIMITED - Analysis Report

Company Number: 14719223

Analysis Date: 2025-07-29 20:24 UTC

Financial Health Assessment for HAMBERLEY CARE FV (HINDHEAD) LIMITED

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1. Financial Health Score: D

Explanation:
The company shows early signs of financial distress with negative net assets and net current liabilities, reflecting more immediate debts than liquid assets. Although the business is very young (incorporated in March 2023) and in a start-up phase, the current financial metrics reveal symptoms of imbalance between resources and obligations, warranting close monitoring and corrective action.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	249,384	Cash and receivables are present but modest in size.
Cash	38,712	Limited cash cushion—stress on liquidity.
Debtors (Prepayments + Deferred Tax)	210,672	Significant receivables, but prepayments may not convert quickly into cash.
Current Liabilities	294,550	Creditors and short-term debts exceed current assets.
Net Current Assets (Working Capital)	-45,166	Working capital deficit; "symptom of distress" in liquidity.
Net Assets	-44,866	Negative equity signals liabilities exceed assets.
Shareholders’ Funds	-44,966	Capital deficit; the company owes more than it owns.
Operating Lease Commitments	42,530,115 (off-balance sheet)	Large future obligations; potential "hidden stress" factor.
Cross Guarantee on Parent Company Bank Debt	9,054,941	Significant contingent liability.

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3. Diagnosis

• Liquidity Strain: The company has negative working capital (-£45k), meaning it lacks sufficient liquid resources to cover its immediate debts. Cash on hand is modest (£38k), which could lead to short-term cash flow challenges.

• Capital Deficiency: Negative net assets (-£45k) and shareholders’ deficit indicate that the company’s liabilities exceed its assets, a red flag that the business is "under the weather" financially. This could limit its ability to raise finance or invest.

• Start-up Phase Impact: Given the company was incorporated in March 2023, these figures may reflect typical early-stage investment and set-up costs rather than operational failure. The company has tangible fixed assets of only £300, consistent with early-stage asset base.

• High Lease Obligations: The disclosed operating leases of over £42M represent a significant future financial commitment. While not on the balance sheet, these represent a "chronic condition" that could strain future cash flows if not managed carefully.

• Parent Company Exposure: The company is party to a cross guarantee for nearly £9M of bank debt of its parent company, adding contingent risk exposure.

• Going Concern: Directors have assessed the company as a going concern based on forecasts, but this requires continued support and prudent cash management.

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4. Recommendations

• Improve Liquidity: Focus on converting debtors/prepayments into cash more quickly and controlling payables to avoid cash flow gaps. Build cash reserves to cover immediate liabilities.

• Monitor Lease Commitments: Review and renegotiate lease terms where possible to reduce long-term cash drain. Consider the impact of these obligations on financial flexibility.

• Equity Injection or Financing: To address negative net assets and strengthen the capital base, consider additional equity investment or structured financing from the parent or external sources.

• Cost Control: Maintain tight control over operating expenses and capital expenditures to conserve cash during this start-up phase.

• Contingency Planning: Given significant contingent liabilities, develop scenarios and plans to manage possible adverse impacts from parent company bank debt exposure.

• Regular Financial Reviews: Establish monthly financial health monitoring to detect worsening symptoms early and adjust strategy accordingly.

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Medical Analogy Summary

Hamberley Care FV (Hindhead) Limited currently presents with "symptoms of financial distress" characterized by a liquidity shortfall and capital deficiency, akin to a patient showing early signs of illness. The large lease commitments and contingent liabilities may act as chronic conditions that require ongoing management. With timely interventions—improving cash flow, shoring up capital, and managing obligations—the company can stabilize and strengthen its financial health.

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