HAMBLETON ELECTRICAL SOLUTIONS LTD

Executive Summary

Hambleton Electrical Solutions Ltd is a financially healthy micro entity with positive net assets and strong liquidity, showing no signs of distress in its first year of operation. The company benefits from prudent financial management but should focus on cash flow forecasting and strategic investment to support future growth. With these measures, the business is well positioned for a stable and sustainable financial future.

HAMBLETON ELECTRICAL SOLUTIONS LTD - Analysis Report

Company Number: 14942146

Analysis Date: 2025-07-20 15:18 UTC

Financial Health Assessment for HAMBLETON ELECTRICAL SOLUTIONS LTD

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1. Financial Health Score: B

Explanation:
As a newly incorporated micro entity, HAMBLETON ELECTRICAL SOLUTIONS LTD shows promising financial health with solid net assets relative to the small scale of operations. The company exhibits a strong working capital position and no immediate liabilities beyond current creditors. Given the limited operating history (just over one year), the score reflects good initial financial stability but acknowledges the need for growth and operational cash flow development.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	150	Minimal investment in long-term assets, typical for a startup focused on service provision.
Current Assets	5,677	Cash, receivables, and short-term assets sufficient to cover near-term obligations.
Prepayments and Accrued Income	3,875	Payments made in advance or income earned but not received yet; implies prudent financial planning.
Current Liabilities	739	Low short-term debts, manageable and healthy relative to current assets.
Net Current Assets	8,813	Strong working capital indicating liquidity and ability to meet short-term needs.
Net Assets (Equity)	8,963	Positive net worth, reflecting a sound capital base with no long-term debt.
Shareholders’ Funds	8,963	Equity wholly owned by the director, showing full control and retained funds.
Average Number of Employees	1	Reflects a micro entity with minimal staffing costs.

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3. Diagnosis

The company’s financial "vital signs" reveal a business in the early stages of life with a healthy cash position and controlled liabilities. The balance sheet shows a positive net asset position with no long-term debts or provisions, indicating a stable financial foundation. The strong net current assets indicate good liquidity — a "healthy cash flow" symptom that suggests the business can comfortably cover its short-term obligations.

However, the company's very low fixed asset base and single employee suggest it is still in a startup phase with limited operational scale. The absence of audit requirements and micro-entity status means financial reporting is simplified but also limits detailed insight into profitability and cash generation.

Overall, the company shows no symptoms of financial distress such as negative working capital, excessive borrowing, or declining equity. The director’s full ownership provides clear governance but also concentration risk, meaning business health depends heavily on the director’s management and market conditions in the electrical installation sector.

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4. Recommendations

• Develop Cash Flow Forecasting: Establish detailed monthly cash flow projections to anticipate working capital needs, especially as the business grows or takes on larger contracts.
• Invest Strategically in Fixed Assets: Consider incremental investment in tools or equipment that enhance efficiency, balanced against cash availability.
• Monitor Receivables and Prepayments: Ensure prompt collection of receivables and appropriate management of prepayments to maintain liquidity.
• Build Business Resilience: Diversify client base and consider succession planning or additional directors to mitigate single-person dependency.
• Prepare for Growth: As turnover increases, plan for scaling operations including potential hiring and upgrading accounting/reporting systems beyond micro-entity requirements.
• Compliance Vigilance: Maintain timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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