HAMILL CONSULTING LTD

Executive Summary

HAMILL CONSULTING LTD is financially healthy with strong liquidity and positive equity, reflecting good short-term stability. However, a reduction in current assets and net current assets signals the need for vigilant cash flow and receivables management to sustain this health. Proactive financial oversight will support continued wellness and growth.

HAMILL CONSULTING LTD - Analysis Report

Company Number: 13992059

Analysis Date: 2025-07-20 18:24 UTC

Financial Health Assessment for HAMILL CONSULTING LTD

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1. Financial Health Score: B

Explanation:
HAMILL CONSULTING LTD demonstrates a solid financial base with strong net current assets and positive shareholder equity, indicating overall financial stability. The score "B" reflects a generally healthy financial position with minor areas to monitor, notably a slight contraction in net current assets and current assets year-on-year, which merits attention but does not signify immediate distress.

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2. Key Vital Signs

Vital Sign	2024 Value (£)	Interpretation
Current Assets	84,338	Healthy cash and receivables, but decreased from £115,292 in 2023, suggesting some cash outflow or reduced receivables.
Current Liabilities	7,977	Low short-term debts, well covered by current assets.
Net Current Assets (Working Capital)	76,361	Strong positive working capital, indicating good short-term liquidity and ability to meet obligations.
Shareholders’ Funds (Equity)	76,361	Positive net worth, showing owners’ stake in the company remains solid but has decreased from £92,213 in prior years.
Average Number of Employees	2	Small team consistent with micro-entity status, manageable overheads.

Interpretation:
The company’s "vital signs" show a healthy liquidity position—like a patient with a strong pulse and stable blood pressure. The decrease in current assets and shareholders’ funds resembles a mild symptom that should be monitored to avoid potential future complications.

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3. Diagnosis

HAMILL CONSULTING LTD’s financial statements reveal a business with sound short-term financial health and no signs of distress such as negative working capital or erosion of equity. The company is in the micro category, with low complexity and straightforward financials.

• Strengths:

  • Positive net current assets and equity indicate a solvent and liquid business capable of meeting its immediate liabilities.
  • Consistency in employee numbers suggests stable operational capacity.
  • No overdue filings or compliance issues, reflecting good governance and regulatory health.

• Areas of Mild Concern:

  • The drop in current assets from £115,292 to £84,338 may indicate reduced cash reserves or slower receivable collections.
  • Corresponding reduction in net current assets and shareholders’ funds points to cautious monitoring of cash flow and profitability needed in the upcoming periods.

Overall, the company is "healthy but should watch its cholesterol" — that is, keep an eye on cash flow management and working capital trends to prevent future liquidity stress.

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4. Recommendations

• Cash Flow Monitoring:
  Implement rigorous cash flow forecasting and management to ensure the slight decline in current assets does not become a liquidity bottleneck.

• Receivables Management:
  Review debtor collection processes to accelerate cash inflows, reducing days sales outstanding (DSO).

• Cost Control:
  Maintain tight control on operating expenses, especially with a small team, to preserve profitability and equity.

• Strategic Planning:
  Consider growth strategies that increase revenue without proportionally increasing liabilities or operational costs.

• Regular Financial Reviews:
  Quarterly financial health checks to track key metrics and detect early "symptoms" of financial strain.

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