HAMPRISES LIMITED

Executive Summary

Hamprises Limited is currently experiencing significant financial strain, marked by a steep decline in liquidity and net assets over the last year. While still solvent, the company shows symptoms of cash flow stress and asset depletion that require immediate management action to restore financial health. Proactive cash flow management, cost control, and strategic planning are essential to improve the company’s financial prognosis.

HAMPRISES LIMITED - Analysis Report

Company Number: 13013102

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

Financial Health Assessment of Hamprises Limited

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1. Financial Health Score: C

Explanation:
Hamprises Limited shows a mixed financial picture with a sharp decline in net assets and current assets over the recent year, indicating symptoms of financial distress. While the company remains solvent with positive net assets and working capital, the significant drop in liquidity and asset base compared to previous years signals caution. The score reflects a need for close monitoring and strategic action to restore financial vitality.

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2. Key Vital Signs

Metric	Latest (2025)	Prior Year (2024)	Interpretation
Share Capital	£1.00	£1.00	Minimal share capital typical for micro-entity status; no direct impact on financial health.
Fixed Assets	£0	£178	Complete depletion of fixed assets could indicate asset sales or write-offs; potential red flag.
Current Assets	£49,620	£213,363	Significant reduction (~77%) in liquid resources; a symptom of declining operational cash flow.
Current Liabilities	£18,748	£4,313	More than fourfold increase in short-term obligations; pressure on liquidity and working capital.
Net Current Assets	£30,871	£209,051	Sharp drop in working capital (~85% decrease); potential strain on meeting short-term debts.
Net Assets / Equity	£30,870	£209,228	Decline in shareholder funds signals erosion of company value and financial buffer.
Employee Count	1	1	Stable workforce size; no immediate cost pressure from headcount changes.

Interpretation of Vital Signs:

• The company's liquidity—the "heartbeat" of daily operations—is weakened as current assets and net working capital have drastically fallen.
• Rising current liabilities resemble "symptoms of distress," potentially from increased short-term borrowing or unpaid bills.
• The disappearance of fixed assets is concerning, as these are often the "bones" providing structural support to the business.
• Despite these warning signs, the company remains solvent with positive net assets.

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3. Diagnosis

Hamprises Limited entered the latest financial year with a robust liquidity position and strong net assets, akin to a patient with a healthy circulatory system and solid bone structure. However, over the last year, there has been a pronounced deterioration in liquidity and asset base, akin to a sudden loss of blood volume and weakening skeletal support. This suggests the company may have experienced operational challenges, asset disposals, or financial strain.

The sharp increase in current liabilities relative to current assets indicates the company could be facing difficulties in managing short-term obligations, a classic symptom of cash flow stress. While the business is not yet insolvent, the rapid erosion of financial buffers means that without intervention, it risks further decline.

The single director with full control suggests decision-making is concentrated, which can be an advantage for rapid response but also a risk if not managed prudently.

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4. Recommendations

1. Improve Cash Flow Management:

   • Conduct a detailed cash flow forecast to identify timing mismatches and prioritize payments.
   • Negotiate extended payment terms with creditors to alleviate short-term pressure.
   • Explore options for increasing cash inflows, such as accelerating debtor collections or securing short-term financing at reasonable rates.

2. Asset Review and Optimization:

   • Investigate the reasons behind the disposal or write-off of fixed assets.
   • Assess opportunities to acquire or lease essential assets that support revenue generation without heavy capital outlay.

3. Cost Control and Operational Efficiency:

   • Monitor overheads closely, especially given the micro-entity scale, to preserve cash resources.
   • Explore technology or consultancy improvements (aligned with SIC codes) to enhance operational productivity.

4. Strategic Planning:

   • Develop a business plan to rebuild financial strength, possibly including capital injection or diversification of services.
   • If the decline is due to market challenges, consider pivoting or focusing on higher-margin services.

5. Governance and Financial Oversight:

   • Regularly review financial performance metrics beyond statutory filings to detect early symptoms of distress.
   • Engage professional advice if cash flow problems intensify.

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