Company Number: 14761311

Analysis Date: 2025-07-19 12:44 UTC

Financial Health Assessment Report for HAWKSRIDGE ROOFING & BUILDING LTD

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1. Financial Health Score: B

Explanation:
For a company incorporated recently (March 2023) and classified as a micro-entity, Hawksridge Roofing & Building Ltd demonstrates a sound and stable financial position with positive net assets and working capital. The score of B reflects a generally healthy financial state with room for improvement, particularly in building liquidity buffers and increasing scale.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	5,638	Indicates short-term resources primarily cash or receivables available to meet obligations. Healthy for a micro-entity.
Current Liabilities	2,036	Short-term debts due within one year. Relatively low, indicating manageable short-term obligations.
Net Current Assets (Working Capital)	4,475	Positive working capital indicates the company can comfortably cover its short-term liabilities—a vital sign of liquidity and operational health.
Creditors Due After One Year	2,036	Longer-term liabilities exist but are not excessive relative to assets. Needs monitoring to avoid future strain.
Net Assets (Shareholder’s Funds)	2,439	Positive net assets show the company’s book value exceeds its liabilities, a sign of solvency.
Number of Employees	1	Very small workforce consistent with micro-entity status; operational scale is limited but focused.

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3. Diagnosis: What the Financial Data Reveals

• Healthy Cash Flow and Liquidity: The company’s working capital is positive and comfortably exceeds short-term liabilities, akin to a patient with a steady pulse and good hydration—these are signs the company can meet immediate financial demands without distress.
• Solvency and Capital Structure: Positive net assets and shareholders’ funds demonstrate a solvent business with a cushion of equity. However, the presence of longer-term creditors, while not alarming, requires attention to ensure debts remain sustainable as the company grows.
• Early Stage and Limited Scale: Incorporated less than two years ago, the company is in its infancy. The small asset base and minimal employee count indicate a startup phase, with potential symptoms of limited operational scale and capacity.
• Concentrated Control: The sole director and 100% shareholder concentration in Mr. Leslie Coneley implies streamlined decision-making but also highlights dependency on this individual—akin to a single vital organ sustaining the system. This can be a risk if diversification in management or ownership is needed.
• No Red Flags: The company is active, not overdue on filings, and shows no signs of distress such as negative net assets or overdue liabilities. The balance sheet is clean and compliant with micro-entity reporting standards.

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4. Recommendations for Financial Wellness Improvement

• Build Cash Reserves: Aim to increase current assets, particularly cash holdings, to create a buffer against unexpected expenses or downturns, improving liquidity resilience.
• Monitor and Manage Debt: Keep a close watch on creditor terms, especially long-term liabilities, to avoid over-leverage and ensure debt servicing capacity remains strong as the business expands.
• Scale Operations Cautiously: Consider strategic growth to increase turnover and assets, which will help spread fixed costs and improve profitability. This might include hiring or subcontracting as workload demands.
• Diversify Governance: Explore adding additional directors or advisors to broaden oversight and reduce reliance on a single individual, strengthening corporate governance.
• Regular Financial Reviews: Schedule periodic in-depth financial reviews to detect early symptoms of financial strain, enabling timely interventions and strategic planning.

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