HAN & SAINTS LTD

Executive Summary

HAN & SAINTS LTD is currently facing significant financial distress characterized by persistent negative net assets and severe liquidity constraints. Without immediate capital infusion and operational improvements, the company risks insolvency. Focused cash flow management, creditor negotiations, and possible capital injection are critical to improve its financial health and ensure long-term viability.

HAN & SAINTS LTD - Analysis Report

Company Number: 12722117

Analysis Date: 2025-07-29 18:59 UTC

Financial Health Assessment for HAN & SAINTS LTD

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1. Financial Health Score: D

Explanation:
The company's financial health signals clear distress with persistent negative net assets and worsening net current liabilities over five years. A grade D reflects a serious condition where the company is technically insolvent and reliant on external support to continue operations.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	5	Critically low; almost no liquid resources to cover short-term obligations (cash, receivables).
Current Liabilities	2,605	Substantial short-term debts demanding repayment within a year.
Net Current Assets	-2,600	Negative working capital indicates inability to meet short-term debts from current assets.
Net Assets	-2,870	Company’s total liabilities exceed assets, indicating insolvency on a balance sheet basis.
Shareholders’ Funds	-2,870	Negative equity; accumulated losses have eroded owner’s investment.
Employee Count	0	No staff, which may reflect minimal operations or reliance on owner-director.
Share Capital	100	Minimal capital injection, limiting financial buffer.

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3. Diagnosis: Symptoms Analysis and Financial Condition

Symptoms of Distress:

• Negative Net Assets: The company has a persistent and increasing deficit in net assets, from -£604 in 2020 to -£2,870 in 2024. This indicates accumulated losses and an erosion of financial stability.

• Severe Working Capital Deficiency: With current liabilities exceeding current assets by over £2,600, the company faces liquidity issues. This "cash flow anemia" suggests difficulty in paying suppliers, creditors, or day-to-day expenses promptly.

• No Audit Requirement & Small Size: As a micro-entity with no employees and minimal capital, the company’s operations are likely very limited. The absence of an audit reduces external financial oversight, which may mask operational weaknesses.

• Dependence on Director: The sole director and 100% shareholder is Mrs. Anife Hyuseinova Salieva, indicating that decision-making and financial support rest entirely on one individual. This concentration increases risk but may also mean flexibility in managing finances.

• Industry Risk: Operating in the retail sale via mail order or internet sector (SIC 47910), the company faces competitive pressures and requires strong working capital to maintain inventory and customer service, which seems lacking.

Overall Diagnosis:
HAN & SAINTS LTD shows chronic financial weakness with symptoms of insolvency and liquidity strain. The negative net assets and working capital deficits are warning signs of distress that threaten ongoing viability without intervention. The company is currently "breathing" but suffering from severe financial "ailments."

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4. Prognosis: Future Financial Outlook

Without corrective action, the company risks insolvency proceedings or forced closure due to inability to meet liabilities. However, as a micro-entity with a controlling director, it can potentially recover if:

• Additional capital injections occur to restore positive net assets
• Operational improvements generate positive cash flow
• Creditors negotiate extended payment terms

If these interventions are not made, the company’s financial condition will likely deteriorate further, leading to potential liquidation.

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5. Recommendations: Prescriptions for Financial Wellness

• Capital Injection: The director should consider injecting additional equity or securing external financing to replenish working capital and reduce negative net assets.

• Cash Flow Management: Implement strict cash flow monitoring and control to prioritize essential payments and avoid overdue liabilities.

• Cost Control: Minimise overheads and operating expenses, especially since there are no employees, to conserve cash.

• Revenue Enhancement: Explore ways to increase sales and improve margins, perhaps by enhancing online marketing or product range.

• Creditor Negotiations: Engage with creditors to restructure or extend payment terms, reducing immediate liquidity pressure.

• Financial Reporting: Although exempt from audit, consider voluntary financial reviews to identify issues early and reassure stakeholders.

• Strategic Review: Evaluate business model viability and consider pivoting or scaling operations to sustainable levels.

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