HELICAL PILE SOLUTIONS LTD

Executive Summary

HELICAL PILE SOLUTIONS LTD is financially stable with strong working capital and net assets, reflecting a healthy micro-business operation. Key areas to monitor include managing deferred income and director loans to maintain liquidity. With prudent financial management, the company is well-positioned for steady growth and operational resilience.

HELICAL PILE SOLUTIONS LTD - Analysis Report

Company Number: 13255958

Analysis Date: 2025-07-20 17:58 UTC

Financial Health Assessment for HELICAL PILE SOLUTIONS LTD (FYE 31 March 2024)

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1. Financial Health Score: B

Explanation:
HELICAL PILE SOLUTIONS LTD demonstrates solid financial stability with positive net assets and strong working capital. The company shows a healthy balance sheet with growing fixed assets and manageable liabilities. However, some caution is warranted due to the presence of significant accruals/deferred income and a director loan, which require monitoring. Overall, the financial "vital signs" suggest a well-managed, financially stable micro-entity with sound prospects but room for enhancing liquidity management.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	103,115	A steady investment in long-term machinery assets aligned with core business activity (manufacturing mining machinery).
Current Assets	158,573	Adequate short-term assets, including cash and receivables, supporting operational liquidity.
Current Liabilities	33,046	Short-term debts are low relative to current assets, indicating comfortable liquidity to cover immediate obligations.
Net Current Assets	136,172	Strong positive working capital, a "healthy pulse" showing good short-term financial health.
Total Assets Less Current Liabilities	239,287	Reflects total operational resources available after covering short-term debts.
Accruals and Deferred Income	105,190	High level of deferred income may indicate prepayments or income received in advance, requiring careful cash flow management.
Net Assets / Shareholders Funds	134,097	Solid equity base, showing the company is "well-capitalised" for its micro size.
Loan to Director	39,308	Indicates funds lent to a director – a potential liquidity "red flag" if not properly managed, but interest charged mitigates risk.
Number of Employees	3	Small workforce consistent with micro-entity status, suggesting a lean operation.

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3. Diagnosis: What the Financial Data Reveals

HELICAL PILE SOLUTIONS LTD exhibits the "vital signs" of a financially healthy micro-business:

• Strong working capital (Net Current Assets of £136k) highlights the company's ability to meet short-term commitments comfortably, reflecting a "healthy cash flow".
• Stable net assets (£134k) and fixed assets investment (£103k) reveal ongoing capital expenditure supporting business growth and operational capacity.
• The significant accruals and deferred income (£105k), however, represent a liability that could mask underlying timing issues in revenue recognition or cash inflow. This calls for close monitoring to avoid cash flow strain.
• The director loan (£39k), while interest-bearing, is a symptom to watch as it ties up cash that might otherwise support operations—this is akin to a "stress marker" indicating potential internal financing reliance.
• The company’s micro-entity status and small team size suggest a focussed, efficient operation, but also potential vulnerability to market changes due to limited scale.

No indications of distress, insolvency risk, or adverse trends are evident. The financial "heartbeat" is steady, with sound equity and liquidity positions.

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4. Recommendations: Steps to Improve Financial Wellness

• Manage Deferred Income Prudently: Develop a clear schedule for recognising deferred income and ensure corresponding cash inflows are timely. This will help prevent liquidity bottlenecks.
• Monitor Director Loan Carefully: Consider formalising repayment terms or alternative financing to reduce reliance on director loans and improve cash availability.
• Enhance Cash Flow Forecasting: Implement regular cash flow projections to anticipate periods of tight liquidity, especially given the accruals and deferred income magnitude.
• Explore Growth Opportunities: With a strong balance sheet, evaluate potential for modest expansion or investment to leverage fixed assets and increase operational scale.
• Maintain Robust Financial Controls: Given the small team, ensure segregation of duties and regular financial reviews to mitigate operational risks.
• Prepare for Audit Thresholds: Although currently exempt, should the company grow, prepare for potential audit requirements by strengthening accounting and reporting systems early.

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