HANDS IN LIMITED

Executive Summary

Hands In Limited shows a marked improvement in financial stability with strong liquidity and equity growth, supporting its ability to meet credit obligations. While the micro-sized IT company appears financially resilient, monitoring intangible asset valuation and cash flow generation is advisable to mitigate risks. Conditional credit approval is recommended with periodic review of operational and financial performance.

HANDS IN LIMITED - Analysis Report

Company Number: 12658469

Analysis Date: 2025-07-29 19:28 UTC

1. Credit Opinion: APPROVE with Monitoring
   Hands In Limited demonstrates a strong improvement in financial position over the last year, with net assets increasing significantly from £19k to £247k. The company holds a solid net current asset position and minimal short-term liabilities, indicating strong liquidity and ability to meet debt obligations. However, the presence of negative fixed assets (likely accumulated amortisation or accounting adjustments) should be monitored. Given the company’s micro size and early stage of operation (incorporated 2020), it is prudent to approve credit on a conditional basis with ongoing review of financial performance and cash flow consistency.

2. Financial Strength
   The balance sheet shows robust growth in net assets and working capital. Current assets increased by approximately £76k to £321k, while current liabilities decreased sharply from £42k to just over £2k, which is a positive sign of debt management. The negative fixed assets suggest intangible assets or capitalised development costs subject to amortisation; this is common in IT/software development businesses but requires scrutiny for impairment risk. Overall shareholders’ funds of £247k provide a solid equity buffer relative to the company’s micro classification thresholds.

3. Cash Flow Assessment
   The company’s net current assets position of £320k and very low current liabilities indicate strong short-term liquidity and good working capital management. This suggests that Hands In Limited can comfortably service short-term obligations and sustain operational expenses. The average employee number is stable at 4, reflecting controlled overhead costs. However, absence of detailed profit and loss data limits full cash flow insight; monitoring cash generation from operations is recommended.

4. Monitoring Points

• Track ongoing fixed asset amortisation and potential impairment risks due to negative fixed asset figures.
• Monitor cash flow statements and profitability once available to ensure sustainable operations and debt servicing.
• Review any changes in current liabilities, particularly if short-term borrowings increase.
• Watch for business growth trends given the software development industry’s fast pace and competitive environment.
• Confirm directors maintain strong governance and financial controls as the company scales.