Company Number: 12752892

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

Financial Health Assessment Report for HAYLEY TREVALYAN LIMITED

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1. Financial Health Score: B-

This company shows signs of overall financial stability but with emerging concerns that merit attention. The grade B- reflects a generally healthy balance sheet and positive working capital, yet a noticeable decline in net assets signals early symptoms of financial strain.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	10,709	Healthy increase from prior years, indicating improved liquidity and cash resources.
Current Liabilities	1,180	Significant reduction compared to prior periods, improving short-term debt management.
Net Current Assets (Working Capital)	9,529	Strong positive working capital, suggesting the company can comfortably cover short-term debts.
Long-term Liabilities	5,566	Increased long-term debt compared to previous years, a symptom of growing financial obligations.
Net Assets	3,963	Declined from £6,676 in 2023, indicating reduced overall equity and potential erosion of value.
Share Capital	100	Minimal share capital, typical for a micro-entity but limiting equity buffer.
Average Employees	3	Stable workforce size, reflecting operational consistency.

Additional Notes:

• The company meets micro-entity reporting standards, with limited disclosures.
• No audit is conducted, consistent with micro-entity status.
• The company has maintained timely filing compliance (accounts and returns not overdue).
• The company operates in SIC code 86900: Other human health activities, an industry sensitive to cash flow and regulatory changes.

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3. Diagnosis: Financial Condition Analysis

HAYLEY TREVALYAN LIMITED exhibits the "vital signs" of a micro-sized business with stable liquidity and positive working capital—key indicators of a "healthy cash flow" status. The company's current assets comfortably exceed current liabilities, allowing it to meet short-term obligations without distress.

However, there are "symptoms of distress" emerging in the form of:

• A sharp decrease in net assets from £6,676 in 2023 to £3,963 in 2024.
• A rise in long-term liabilities from £960 to £5,566, indicating increased borrowing or deferred obligations.

This combination suggests the company may be taking on more debt or experiencing asset write-downs, which could strain equity and financial flexibility if not managed carefully. The stability in employee numbers and the absence of overdue filings are reassuring signs, but the erosion of net assets warrants monitoring.

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4. Recommendations: Improving Financial Wellness

• Debt Management: Review long-term liabilities to assess the cause of increase and explore refinancing or repayment plans to reduce interest burden and improve solvency.
• Profitability Focus: Since profit and loss data are not filed (micro-entity exemption), the director should maintain internal profit tracking to ensure operations generate sufficient margins to rebuild equity.
• Cash Flow Monitoring: Continue to monitor cash inflows and outflows closely to maintain strong working capital and avoid liquidity crunches.
• Capital Injection: Consider increasing share capital or bringing in additional equity investment to strengthen the balance sheet and provide a buffer against unforeseen expenses.
• Cost Control: Evaluate operational expenses to identify potential savings without compromising service quality, especially given the stable but small workforce.
• Strategic Planning: Given the nature of the health activities sector, anticipate regulatory changes or market shifts that could impact revenues and plan contingencies accordingly.

By addressing these areas proactively, the company can reverse the current downward trend in net assets and maintain a robust financial position.

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