Company Number: 13023331

Analysis Date: 2025-07-19 12:22 UTC

Financial Health Assessment for Henleys Group Limited (as of 31 March 2024)

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1. Financial Health Score: B

Explanation:
Henleys Group Limited demonstrates a solid financial foundation with positive net assets and improving working capital. The company is small in size and has steadily increased its net assets from £12,706 in 2023 to £28,050 in 2024, reflecting retained earnings growth. While cash reserves are strong and liabilities are manageable, the company shows some signs of cautious financial management due to increased creditors and accrued expenses. Overall, the company is financially healthy but should monitor its short-term liabilities closely to maintain this condition.

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2. Key Vital Signs (Core Financial Metrics)

Vital Sign	2024 Value (£)	Interpretation
Current Assets	79,612	Healthy level of liquid and short-term assets.
Cash & Cash Equivalents	53,827	Strong cash position indicates good liquidity.
Debtors	25,785	Moderate level, reasonable given consultancy/building projects.
Current Liabilities	55,899	Increased from prior year; needs monitoring.
Net Current Assets (Working Capital)	23,713	Positive and increased, indicating ability to cover short-term debts.
Net Assets (Equity)	28,050	Represents company’s net worth; has more than doubled since 2023.
Share Capital	800	Nominal, typical for a small private limited company.
Employees	2	Small workforce, consistent with company size.

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3. Symptoms Analysis (What the Numbers Reveal)

• Healthy Cash Flow: The company holds a robust cash balance (£53,827), which suggests that it has a "healthy pulse" in terms of liquidity. This is vital for meeting immediate obligations and investing in growth.
• Improving Working Capital: Net current assets rose from £10,841 in 2023 to £23,713 in 2024. This "good circulation" of working capital indicates that the company has sufficient short-term resources to fund day-to-day operations without stress.
• Growing Net Assets: The net assets more than doubled in one year, primarily due to accumulated retained earnings (from £11,906 to £27,250). This points to profitable operations and reinvestment, akin to a patient gaining strength over time.
• Rising Current Liabilities: Current liabilities increased from £45,452 to £55,899, mainly due to accrued expenses and other creditors. This could be a "symptom of strain" if liabilities continue to outpace asset growth.
• Related Party Balances: The reduction in directors’ current accounts from a £24,662 liability to a £1,502 debtor balance suggests improved internal financial flows and reduced reliance on director loans or advances.
• Asset Base: The company has tangible fixed assets of £4,590, a small but growing investment in property and equipment, indicating some capital expenditure.

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4. Diagnosis: Overall Financial Condition

Henleys Group Limited is currently in good financial health for a small private company. The "vital signs" such as strong cash reserves, positive working capital, and growing equity suggest a business that is financially stable and capable of meeting its obligations. The steady increase in retained earnings indicates profitability, though the absence of an income statement limits detailed profit analysis.

There are no immediate "symptoms of distress" such as negative equity, persistent losses, or liquidity shortfalls. However, the company should be cautious about the increasing current liabilities, especially accrued expenses, which might indicate timing mismatches in payments or increased operational costs.

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5. Recommendations (Prescriptions for Financial Wellness)

• Monitor and Manage Current Liabilities: Keep a close eye on accrued expenses and other creditors to ensure they do not grow disproportionately. Timely payment management will prevent liquidity bottlenecks.
• Maintain Healthy Cash Flow: Continue strong cash management practices to preserve liquidity, particularly important given the company's small size and dependency on cash.
• Improve Debtor Collections: Although debtors are reasonable, enhancing credit control could improve cash flow further and reduce the risk of bad debts.
• Plan for Growth Investments: With increasing retained earnings, consider judicious investment in fixed assets or expanding the workforce to support growth initiatives.
• Regular Financial Review: Continue regular financial health check-ups, including profit and loss monitoring, to catch early warning signs and adjust strategies accordingly.
• Document and Audit Preparedness: While exempt from statutory audit, consider voluntary audits or reviews to enhance stakeholder confidence and identify hidden risks.

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Executive Summary