HBH CONSULTING LTD

Executive Summary

HBH Consulting Ltd demonstrates moderate financial stress with declining net assets and reduced liquidity, though it remains compliant with filing obligations and retains shareholder support. The company’s operational and governance stability merits further review, particularly around profitability and cash flow sustainability. Overall, investors should proceed with caution and conduct focused due diligence on financial performance and management changes.

HBH CONSULTING LTD - Analysis Report

Company Number: 13117181

Analysis Date: 2025-07-20 12:24 UTC

1. Risk Rating: MEDIUM
   The company shows a decrease in net assets and current assets from the previous year, alongside a small cash balance, which raises moderate concerns about liquidity and solvency. However, there are no overdue filings or indications of insolvency proceedings, and the business is still active with a controlling shareholder maintaining significant ownership.

2. Key Concerns:

• Declining net assets from £8,595 in 2023 to £3,126 in 2024, indicating erosion of retained earnings and potential profitability issues.
• Reduced current assets and cash position, with cash down to £3,756 and debtors significantly lower, which may signal reduced sales or collection challenges impacting liquidity.
• Director change during the year with one director resigning; although no misconduct is noted, governance stability should be confirmed, especially given the small management team size.

3. Positive Indicators:

• No overdue accounts or confirmation statements, indicating compliance with statutory filing requirements and good governance on legal reporting.
• Share capital remains intact at £10,000, supporting the equity base despite retained losses.
• Related party loan from director repaid shortly after year end, suggesting ongoing support from management for cash flow needs.
• The company operates in consultancy and health-related fields, generally stable sectors with potential for sustainable revenue.

4. Due Diligence Notes:

• Obtain detailed profit and loss information to understand the causes behind the net asset decline and retained earnings losses.
• Verify the nature and collectability of debtors, especially the significant reduction from prior year.
• Assess the impact of director resignation on operational continuity and review any changes in internal controls or management practices.
• Confirm the company's cash flow projections and working capital management given the reduced liquidity position.
• Review related party transactions and director loans for any contingent liabilities or conflicts of interest.