HAWKINS AND WOOLLEY HEATING AND PLUMBING LTD

Executive Summary

Hawkins and Woolley Heating and Plumbing Ltd presents a stable and solvent financial profile typical of a successful micro-entity in the plumbing and heating sector. The company maintains healthy liquidity and manageable liabilities with no compliance issues, though a slight reduction in net assets warrants monitoring. With prudent financial management, the outlook remains positive.

HAWKINS AND WOOLLEY HEATING AND PLUMBING LTD - Analysis Report

Company Number: 12753808

Analysis Date: 2025-07-29 18:59 UTC

Financial Health Assessment for HAWKINS AND WOOLLEY HEATING AND PLUMBING LTD

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1. Financial Health Score: B

Explanation:
This micro-entity company demonstrates a sound financial position with stable net assets, positive working capital, and no overdue filings. While the company maintains a healthy balance sheet, slight declines in net assets over the last year and modest fixed asset base suggest room for cautious optimism rather than outright robustness.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets	£38,283	Positive net assets indicate overall solvency and shareholder equity. Slight decrease from £43,108 in 2023 worth monitoring.
Net Current Assets (Working Capital)	£22,172	Healthy positive working capital means the company can easily meet short-term obligations.
Fixed Assets	£16,911	Modest fixed asset base typical for a service company; stable year-on-year.
Current Liabilities	£17,937	Short-term liabilities are manageable given current assets.
Share Capital	£100	Minimal share capital typical for a micro-entity; equity mainly retained earnings.
Number of Employees	4	Small, stable workforce consistent with micro-entity classification.
Filing Status	Up to date	No overdue accounts or confirmation statements – good compliance health.

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3. Symptoms Analysis and Diagnosis

• Healthy cash flow indicators: The company’s net current assets (working capital) remain comfortably positive, which is a vital sign of liquidity health. This suggests the business is not experiencing cash flow distress and can cover its immediate debts.
• Stable asset base: Fixed assets have remained relatively stable, indicating no major asset disposals or large new capital expenditures, which aligns with a steady operational model.
• Slight decline in net assets: The drop from £43,108 to £38,283 in net assets over the year may indicate either reduced profitability or distributions to shareholders. This is a mild symptom but worth monitoring to ensure it does not signify emerging financial strain.
• Small equity base: The minimal share capital points to reliance on retained earnings and operational cash flow for financial strength, which is typical but limits capital buffer.
• No overdue filings: Compliance with Companies House filing deadlines reflects good governance and reduces risk of regulatory penalties.
• Micro-entity size and sector: Operating in plumbing and heating installation, the company’s financials are consistent with a small service provider, not capital intensive but reliant on steady contracts and cash management.

Overall diagnosis: The company exhibits signs of good financial health typical of a micro-entity with a stable operating model, sound liquidity, and manageable liabilities. The small decrease in net assets does not currently signify serious distress but should be watched.

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4. Recommendations

• Monitor profitability trends: Investigate the cause of the recent net assets decline. If due to reduced profits or increased costs, take steps to improve margins or control expenses.
• Strengthen cash reserves: Maintain or improve working capital levels to ensure continued healthy liquidity, particularly as fixed assets and capital buffers are modest.
• Consider capital injections: If growth or resilience is a goal, consider increasing equity capital or retained earnings to build a stronger financial cushion.
• Maintain compliance vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties or reputational damage.
• Plan for growth cautiously: As a micro-entity, growth should be managed carefully to avoid overextension of resources, especially staffing and fixed assets.
• Enhance financial reporting: Even as a micro-entity, more detailed internal tracking of cash flow and profitability can provide early warnings of financial stress.

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