HANSA CONSULTING LTD

Executive Summary

HANSA CONSULTING LTD exhibits sound financial health with positive liquidity and growing equity, indicative of a financially solvent and compliant micro-entity. While current indicators show stability and prudent management, the company should focus on building cash reserves and governance frameworks to support sustainable growth and mitigate risks associated with its small scale and concentrated ownership.

HANSA CONSULTING LTD - Analysis Report

Company Number: 13120860

Analysis Date: 2025-07-19 12:46 UTC

Certainly. Let us undertake a detailed financial health assessment of HANSA CONSULTING LTD, akin to a clinical evaluation of a patient, to understand its fiscal vitality and diagnose its financial condition.

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1. Financial Health Score: B

Explanation:
HANSA CONSULTING LTD demonstrates a positive trajectory in its net current assets and shareholder funds, indicating improving liquidity and equity base. The company is financially solvent with no overdue filings or signs of distress, typical of a micro-entity startup in its early years. However, relatively modest asset levels and small scale limit the grade to a B, reflecting sound but nascent financial health.

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2. Key Vital Signs (Core Financial Metrics)

Metric	31 Jan 2024	Interpretation
Current Assets	£1,914	Cash and short-term receivables available.
Current Liabilities	£479	Short-term debts and obligations due.
Net Current Assets	£1,435	Healthy working capital, indicates good liquidity to cover short-term liabilities.
Shareholders Funds	£1,435	Equity held by the owner, increased steadily over 4 years.
Average Employees	1	Minimal staff, low fixed overhead costs.
Overdue Filings	No	Compliance with statutory obligations is timely.

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3. Diagnosis (What the Numbers Reveal)

• Liquidity & Cash Flow Health:
  The positive net current assets (£1,435) reflect a "healthy cash flow pulse," meaning the company currently holds enough short-term assets to cover its immediate obligations. This is a strong symptom of operational prudence and solvent working capital management.

• Equity Growth:
  Shareholders' funds have grown from £29 in 2021 to £1,435 in 2024, showing retained earnings or capital injections over time. This is akin to a strengthening "financial immune system," providing resilience against shocks.

• Scale & Growth Stage:
  As a micro-entity with only one employee, the company is in an early growth phase. While the small scale limits diversification and economies of scale, it also means lower fixed costs and flexibility.

• Compliance & Governance:
  The company is up to date with statutory accounts and confirmation statements, indicating no procedural "symptoms of distress" such as penalties or regulatory scrutiny.

• Risk Factors:
  The significant control held by a single director and shareholder (Mrs Rajshree Haines-Patel) centralizes decision-making, which can be both an advantage for nimble management and a risk if succession or governance planning is inadequate.

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4. Recommendations (Actions to Enhance Financial Wellness)

1. Cash Flow Monitoring:
   Maintain diligent tracking of receivables and payables to sustain the positive working capital trend and avoid liquidity crunches as the business scales.

2. Build Cash Reserves:
   Aim to increase current assets further to create a buffer for unexpected expenses or investment opportunities, akin to building stronger "financial reserves."

3. Diversify Revenue Streams:
   Consider expanding services or client base to reduce dependency on limited contracts, improving financial stability and growth potential.

4. Governance and Succession Planning:
   Develop a framework for risk management, including potential director succession and contingency plans, to safeguard continuity.

5. Strategic Investment:
   Evaluate opportunities for strategic investment in technology or marketing to accelerate growth, balancing cost with expected returns.

6. Regular Financial Reviews:
   Schedule periodic internal financial reviews to detect early "symptoms" of financial stress or inefficiency and take corrective action promptly.

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