Company Number: 14597162

Analysis Date: 2025-07-29 13:21 UTC

1. Risk Rating: MEDIUM
   Hanwealth Ltd shows recent positive movement with improved net current assets and shareholders' funds, indicating some solvency improvement. However, the company is still relatively new (incorporated 2023) with modest asset size and some prior liquidity challenges, warranting a medium risk rating for an investor.

2. Key Concerns:

• Liquidity Volatility: The company had negative net current assets (£-874) in its first two reported years, indicating past liquidity stress. Though improved in the latest year (£16,611), the absolute cash balances remain modest (£42k).
• Concentration Risk: The company is controlled 100% by one director and shareholder, Paul Henry, which may present governance and succession risks.
• Tax and Social Security Creditors: A sizable portion of current liabilities (£18,862) relates to taxation and social security, which if unpaid could trigger regulatory risk or cash flow issues.

3. Positive Indicators:

• Improved Financial Position: Net current assets have turned positive and shareholders’ equity increased significantly from £1,223 to £18,169 within a year, suggesting operational or capital injection improvements.
• Compliance: All filings including accounts and confirmation statements are up to date and not overdue, indicating good regulatory compliance.
• No Audit Required: As a small company with exemption, the accounts are consistent with expectations for a company of this size and stage.

4. Due Diligence Notes:

• Investigate the nature of the tax and social security liabilities and review payment history to assess any risk of enforcement or penalties.
• Review the company’s revenue generation and cash flow projections to understand the sustainability of recent financial improvements.
• Assess any related party transactions or financial support given the sole director/shareholder structure.
• Confirm the accuracy and completeness of reported assets, especially cash and debtors, given the small scale of operations.