Company Number: 13680841

Analysis Date: 2025-07-29 18:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Haydon Healy Limited is a relatively new private limited company incorporated in late 2021, operating in the employment placement agency sector (SIC 78109). The company presents a modest but positive net current asset position and shareholder funds as of 31 March 2024. However, there is a notable decline in net current assets and shareholder equity compared to the prior year, indicating some financial pressure. Given the company’s young age, small scale (4 employees), and the drop in working capital, credit approval should be conditional on ongoing monitoring of cash flow and debtor collections. The solid presence of multiple directors and significant control by established entities lends some confidence in governance.

2. Financial Strength:

• Shareholders' funds decreased from £91,372 in 2023 to £53,454 in 2024, a decline of approximately 41%.
• Net current assets declined from £91,372 to £53,454 over the same period, reflecting tightening liquidity.
• Current assets dropped by about £33k primarily due to lower debtors (£150,004 to £115,112).
• Cash balances are relatively stable (£30,978 in 2024 vs £29,104 in 2023).
• Current liabilities increased slightly from £87,736 to £92,636, mainly tax and social security related.
  Overall, the balance sheet shows a lean operation with limited buffer. The deterioration in equity and working capital signals caution but not distress.

3. Cash Flow Assessment:

• Cash on hand remains stable with a small increase, indicating some cash management stability.
• Debtors are a significant portion of current assets (~79%), with a decline indicating either better collections or lower sales; however, the drop should be verified.
• Current liabilities are mainly taxation and social security, which can be sensitive if cash flow tightens.
• Net current assets remain positive but have dropped materially, indicating reduced liquidity headroom.
• The company has no reported borrowings, which reduces financial risk but may also limit flexibility.
  Liquidity appears adequate currently but with limited cushion for unexpected cash demands.

4. Monitoring Points:

• Debtor ageing and collection efficiency to ensure receivables convert timely to cash.
• Profitability trends and whether the decline in reserves is due to trading losses or one-off items.
• Tax liabilities and payment patterns to avoid accumulation of overdue liabilities.
• Cash flow forecasting given the company's early stage and the sector’s typical payment cycles.
• Any changes in directors or ownership that could affect governance and financial policy.
• Filing of next annual accounts and confirmation statements to ensure compliance and transparency.