HESAM AZHARI LIMITED

Executive Summary

HESAM AZHARI LIMITED is a newly formed micro-entity showing early signs of profitability but operating with an extremely minimal asset and equity base. While the company currently exhibits a fair financial condition with no distress signals, its fragile financial "vital signs" require careful management and growth-focused strategies to build resilience. Continued monitoring and proactive financial planning are essential to strengthening the company’s financial health going forward.

HESAM AZHARI LIMITED - Analysis Report

Company Number: 15210665

Analysis Date: 2025-07-29 14:04 UTC

Financial Health Assessment Report for HESAM AZHARI LIMITED

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1. Financial Health Score: C (Fair)

Explanation:
As a newly incorporated micro-entity with minimal trading history and very modest financial figures, HESAM AZHARI LIMITED shows signs of initial business activity but remains in a very early and fragile stage of financial health. The company has generated a small profit, indicating some operational viability, but the extremely low asset base and minimal equity mean its financial "vital signs" are fragile and require careful monitoring.

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2. Key Vital Signs

Metric	Value	Interpretation
Turnover (Revenue)	£5,365	Low turnover reflecting early-stage business; revenue generation is minimal but positive.
Profit for the Period	£2,367	Positive profit margin (~44%) on low turnover suggests some pricing control or low overheads.
Net Assets (Equity)	£1	Extremely low equity base, implying little buffer against losses or liabilities.
Total Assets less Current Liabilities	£1	Indicates almost no net working capital; company is operating with minimal financial cushion.
Average Number of Employees	1	Sole operator or very small team, typical of micro-entities.
Company Age	~1 year	Very early in business lifecycle; limited financial history constrains full assessment.
Filing Status	Up to date	Compliance with filing deadlines indicates good administrative health.

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3. Diagnosis: What the Financial Data Reveals

HESAM AZHARI LIMITED is in the nascent stage of its business lifecycle, akin to a patient just admitted with initial mild symptoms but no major distress. The company has generated a modest profit on low turnover, which is a positive sign of "healthy cash flow" relative to its scale. However, the balance sheet is extremely thin with net assets of only £1, indicating virtually no capital buffer or retained earnings.

This "lean" financial structure is typical for a micro-entity just starting out, but it also reveals symptoms of vulnerability—any unexpected expenses, downturns, or cash flow interruptions could quickly destabilize the company. The single director/employee structure reflects a sole trader transitioning into a limited company form, which often faces challenges in scaling and accessing external finance.

Overall, the financial health is fair but fragile. The company shows no current symptoms of financial distress such as losses or overdue filings, but the minimal equity and asset base mean it is highly dependent on ongoing revenue generation and possibly personal funding from the owner.

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4. Recommendations: Steps to Improve Financial Wellness

• Build Financial Cushion: Aim to increase retained earnings by reinvesting profits or injecting additional capital. This will create a buffer against unforeseen costs or downturns.
• Increase Turnover: Explore opportunities to grow sales steadily to improve economies of scale and spread fixed costs.
• Monitor Cash Flow Closely: Maintain a tight control on working capital; avoid commitments that could strain cash resources.
• Consider Business Planning: Develop a robust business plan including forecasts and contingencies to guide growth and identify funding needs.
• Seek Professional Advice: Engage with a financial advisor or accountant to ensure tax efficiency, compliance, and to explore funding options if growth requires external finance.
• Compliance Maintenance: Continue timely filings and governance to avoid penalties and build business credibility.

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