HANN CONSULTANCY LTD

Executive Summary

HANN Consultancy Ltd exhibits a weakening financial profile with declining net assets and reduced liquidity, though it remains solvent with positive working capital. The company’s micro size and concentrated ownership limit operational scale and flexibility, warranting a cautious credit approach. Conditional approval is advised with stringent monitoring of cash flow and liabilities to manage credit risk effectively.

HANN CONSULTANCY LTD - Analysis Report

Company Number: 13527350

Analysis Date: 2025-07-29 15:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   HANN Consultancy Ltd is a micro-entity with a very small workforce (1 employee including the director) and limited financial activity. The company shows a decline in net assets from £51,351 in 2023 to £32,687 in 2024 and a reduction in current assets, which raises concerns about its short-term liquidity and operational scale. The presence of long-term creditors (£31,015) against reduced current assets further suggests potential pressure on cash flow. However, there is no evidence of overdue filings or director disqualifications, and the sole director maintains full control. Credit approval is recommended with conditions, requiring close monitoring of cash flow and working capital trends before extending or increasing credit facilities.

2. Financial Strength:
   The balance sheet indicates a weakening financial position over the last year. Fixed assets decreased from £51,604 to £43,094, and current assets dropped significantly from £58,330 to £22,815. Although net current assets remain positive at £20,608, this is less than half of the prior year's £44,324. The company’s net assets declined by approximately 36%, from £51,351 to £32,687. Shareholders’ funds mirror net assets due to the small company structure. The company carries long-term liabilities of £31,015, which are significant relative to its asset base. This suggests a leveraged position with limited equity buffer.

3. Cash Flow Assessment:
   Current liabilities at £2,207 short-term are low, but the large non-current liabilities (£31,015) may impact cash flow if repayment terms are near. The sharp drop in current assets, especially cash or equivalents (not explicitly broken out), signals tightening liquidity. The working capital position remains positive but substantially reduced, indicating less cushion to cover short-term obligations and operational expenses. Given the micro-entity status and limited staff, cash flow is likely tightly managed, but any unexpected expenses or delayed receivables could stress liquidity.

4. Monitoring Points:

• Track quarterly cash flow and liquidity, especially current assets versus current liabilities.
• Monitor repayment schedules on long-term liabilities and any refinancing risks.
• Watch for any late filing of accounts or confirmation statements as indicators of operational stress.
• Review turnover and profitability (when available) to assess business growth or contraction.
• Evaluate director conduct and any changes in shareholding or management control.