HEYFRESCO LIMITED

Executive Summary

HEYFRESCO LIMITED is financially stable but shows concerning signs of contraction with significantly reduced liquidity and equity over the last year. The company operates with minimal activity and no employees, indicating a fragile state. Proactive financial management and strategic operational review are essential to restore financial health and ensure sustainable growth.

HEYFRESCO LIMITED - Analysis Report

Company Number: 14024931

Analysis Date: 2025-07-20 11:25 UTC

Financial Health Assessment: HEYFRESCO LIMITED (As of 30 April 2024)

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1. Financial Health Score: C

Explanation:
HEYFRESCO LIMITED shows signs of financial stability but with notable concerns that temper the overall health grade. The company maintains positive net current assets and net assets, indicating it can cover short-term liabilities. However, the significant decline in working capital and net assets over the past year signals symptoms of financial distress or contraction. The absence of employees and limited asset growth, combined with a sharp reduction in current assets, suggest operational downsizing or reduced activity. This warrants caution but does not yet indicate severe illness.

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2. Key Vital Signs

Metric	30/04/2024	30/04/2023	Interpretation
Current Assets	£4,970	£17,500	Sharp reduction (down ~72%)—a symptom of decreased liquidity or asset disposal.
Current Liabilities	£850	£5,152	Significant decline in short-term obligations, possibly due to paying off creditors or reduced operations.
Net Current Assets	£4,120	£12,348	Positive but sharply reduced working capital; less buffer to cover short-term debts.
Net Assets (Shareholders’ Funds)	£3,520	£11,388	Reduction in equity may suggest losses or capital withdrawals; a concerning symptom for financial vitality.
Employees	0 (avg)	1 (avg)	No staff reported in the latest year, indicating minimal operational activity or a shift in business model.
Audit Status	Exempt (Micro)	Exempt (Micro)	Small company exemption; limited external scrutiny—may mask underlying issues.

Interpretation of Vital Signs:

• The liquidity position remains positive, but the steep drop in current assets and net assets is a red flag.
• The company is still solvent, able to meet immediate obligations, but with reduced financial reserves.
• The drop in employee numbers to zero may indicate a pause or scaling down of operations, which can impact future revenue generation.
• The financial statements are unaudited, which is typical for micro-entities but means less assurance on accuracy.

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3. Diagnosis

The company exhibits symptoms consistent with a business in contraction or early financial strain. The sharp decrease in net current assets and shareholders' funds over the last year indicates that the company may have experienced operational losses or drawn down capital resources. While it remains solvent with positive working capital, the reduction in liquidity and equity signals that the company’s financial "immune system" is weakened.

The absence of employees suggests a low level of ongoing business activity, which could limit future cash inflows and growth potential. The company’s small size and micro-entity status limit the depth of financial disclosures, making it important to monitor operational and financial changes closely.

Overall, HEYFRESCO LIMITED is in a stable but fragile state—it is not in immediate danger of insolvency but needs to address underlying issues to prevent further deterioration.

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4. Recommendations

To strengthen financial health and improve future outlook, consider the following actions:

• Enhance Liquidity Management:
  Maintain or increase current assets through improved cash flow management, such as accelerating receivables or trimming unnecessary expenses.

• Review Business Operations:
  Evaluate the reasons behind the reduction in employees and asset base. If operational activity has slowed, develop a clear plan to revive or pivot the business model.

• Capital Injection:
  Consider additional equity funding or shareholder loans to bolster net assets and provide a buffer against future shocks.

• Regular Financial Monitoring:
  Implement monthly cash flow forecasts and financial reviews to detect symptoms of distress early and respond promptly.

• Explore Growth Opportunities:
  Investigate new revenue streams or market niches in artistic creation (SIC 90030) to rebuild the company’s financial strength.

• Prepare for Next Audit/Filing:
  Although exempt from audit, consider voluntary external review for credibility with stakeholders and early detection of financial issues.

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Medical Analogy Summary

HEYFRESCO LIMITED currently shows signs of "financial fatigue" with shrinking reserves and reduced operational activity. Its "vital signs" suggest it is stable but vulnerable, like a patient recovering from an illness but needing careful management to regain full strength. Without intervention, symptoms could worsen, risking insolvency.

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