Company Number: 13680380

Analysis Date: 2025-07-29 17:16 UTC

Financial Health Assessment for HARTROSE LIMITED (as at 31 October 2024)

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1. Financial Health Score: C

Explanation:
The company shows early-stage growth characteristics with some positive signs such as increased fixed assets and a significant rise in profit and loss reserves. However, the negative net current assets indicate short-term liquidity challenges. This mixed picture results in a mid-tier rating, reflecting both promise and caution.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Cash at bank	£3,441	Modest cash reserves; improved from prior years but still low, indicating limited liquidity.
Net Current Assets	£-398	Negative working capital ("symptom of distress"); current liabilities exceed current assets.
Fixed Assets (Tangible)	£7,120	Investment in long-term assets; positive sign of capital expenditure for business growth.
Shareholders’ Funds	£6,722	Equity has increased substantially, driven by accumulated profits; healthy solvency indicator.
Profit & Loss Reserves	£6,622	Retained earnings showing the company is generating profits internally.
Number of Employees	1	Very small headcount, typical of a micro or small enterprise.
Turnover (not disclosed)	Not provided	Lack of turnover data limits full assessment of operational performance.

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3. Diagnosis

HARTROSE LIMITED is in a nascent growth phase, having been incorporated in late 2021. The company has made a significant jump in retained profits (£6,622) over the last year, indicating it is becoming profitable or has recognized accumulated income. The acquisition of tangible fixed assets (£7,120) suggests capital investment, likely to support future operations.

However, the negative net current assets (-£398) signal a liquidity imbalance: the company’s short-term obligations slightly exceed its short-term resources. This can be likened to a "short-term cash flow bottleneck" or a "mild symptom of financial strain." The cash balance, while improved (£3,441), is still quite modest relative to the scale of fixed assets, implying that working capital management should be a priority.

The absence of an income statement and turnover figures means we cannot fully assess revenue generation or profitability trends. The company remains small in scale with only one employee, which aligns with the micro/small category but suggests limited operational scope.

Overall, the business appears solvent and growing but faces early-stage liquidity constraints that warrant careful monitoring.

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4. Recommendations

• Improve Working Capital Management:
  Focus on converting current assets into cash more quickly and/or negotiating longer payment terms with creditors to alleviate negative net current assets. Healthy working capital is akin to a strong pulse—essential for day-to-day operations.

• Increase Cash Reserves:
  Maintain or build cash buffers to provide a financial cushion that can absorb unexpected expenses or delays in receivables.

• Monitor Asset Investment:
  Ensure that fixed asset investments are aligned with operational needs and revenue growth to avoid overextension of resources.

• Enhance Financial Reporting:
  Consider providing fuller financial statements (including income statement) to allow more comprehensive analysis. Transparent reporting helps diagnose underlying health conditions more clearly.

• Plan for Growth:
  As the company grows, consider scaling operations prudently, keeping an eye on liquidity ratios and profitability to avoid overstretching finances.

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