Company Number: 12774970

Analysis Date: 2025-07-29 20:17 UTC

Financial Health Assessment: HARRISON'S ESTATES LIMITED (as of 31 December 2023)

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1. Financial Health Score: C (Fair)

Explanation:
The company shows a stable asset base with consistent fixed assets but exhibits signs of liquidity strain, indicated by persistent net current liabilities. The increase in shareholders’ funds is a positive sign, yet the ongoing working capital deficit suggests moderate financial stress requiring attention.

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2. Key Vital Signs:

Metric	2023 Value (£)	Interpretation
Fixed Assets	426,352	Healthy tangible asset base, likely property-related given SIC.
Current Assets	97,567	Improved cash/debtors level, indicating better short-term liquidity.
Current Liabilities	372,226	High short-term obligations; significant burden.
Net Current Assets	-274,659	Negative working capital ("symptom of distress"), potential liquidity risk.
Shareholders’ Funds	151,693	Increased equity base, showing retained profits or capital injection.
Net Assets	151,693	Positive net worth indicating solvency on a balance sheet basis.

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3. Diagnosis:

• Vital Signs Analysis:
  The company’s fixed assets remain stable over four years at £426k, reflecting ownership or leasehold of property assets aligned with its SIC code (real estate letting). This is a strong and stable foundation ("healthy bones").

• Liquidity Symptoms:
  The current liabilities significantly exceed current assets, resulting in a net current liabilities of approximately £275k. This "negative working capital" is a classic symptom of potential liquidity distress — the company may struggle to meet short-term debts as they fall due without converting fixed assets or raising further funds.

• Equity Growth:
  Shareholders’ funds have increased from £44k in 2020 to £152k in 2023, a positive "immune response" indicating either retained earnings or additional capital contributions, which is a healthy sign of business growth or recapitalisation efforts.

• No Audit and Micro Entity Filing:
  The accounts are unaudited and filed under micro-entity standards, which limits detailed disclosure, especially on profitability and cash flow. This lack of detailed profit and loss data ("no pulse reading") restricts deeper insight into operational performance.

• Employee Base:
  Employing only one person (likely the director), this is a very small-scale operation, limiting operational complexity but also potential for rapid response or scaling.

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4. Recommendations:

• Improve Liquidity Management:
  The critical symptom of negative working capital should be addressed. The company should explore options such as:

  • Negotiating extended payment terms with creditors.
  • Accelerating collection of receivables.
  • Reviewing short-term debt structure to reduce pressure on cash flow.

• Asset Utilisation:
  Consider whether part of the fixed assets can be leveraged (e.g., refinancing, sale and leaseback) to generate cash and reduce current liabilities.

• Profit and Loss Transparency:
  Although exempt from audit, voluntarily preparing a detailed profit and loss statement will help diagnose operational profitability and cash flow health.

• Capital Structure Review:
  Explore potential to raise additional equity or long-term financing to strengthen the capital base and reduce reliance on short-term creditors.

• Monitoring and Early Warning:
  Regular financial reviews focusing on liquidity ratios and cash flow forecasts ("vital signs monitoring") will help detect early signs of distress and allow proactive management.

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