HGM ASSISTANT LTD

Executive Summary

HGM Assistant Ltd is a micro private limited company with a sound but minimal financial base and positive liquidity. The company, controlled by a single director/shareholder, demonstrates basic financial health, but limited trading history warrants cautious credit exposure. Conditional approval is recommended with ongoing monitoring of cash flow and business performance to mitigate risk.

HGM ASSISTANT LTD - Analysis Report

Company Number: 15424715

Analysis Date: 2025-07-29 18:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   HGM Assistant Ltd is a newly incorporated private limited company with limited operating history (incorporated January 2024). Its small size and modest financial base suggest limited capacity to absorb shocks or scale rapidly. However, it currently maintains positive net assets (£3,949) and net current assets (£2,875) with no overdue filings, indicating conscientious governance. The majority shareholder and director, Miss Hannah Grace Mitchell, appears to have full control and is actively managing the business. Given the lack of trading history and limited financial data, credit extension should be conditional on continued monitoring of cash flow and trading performance, with relatively low exposure recommended initially.

2. Financial Strength:
   The balance sheet shows total net assets of £3,949, primarily comprised of positive net current assets of £2,875 and fixed assets of £1,074 (computer equipment). Current liabilities total £5,045, mostly taxes and social security, indicating obligations within the next year that must be managed carefully. Shareholders’ funds correspond with net assets, reflecting no long-term debt or external financing. The company has a very modest capital base (1 share at £1) and no external loans. The director loan account balance is zero after repayments, indicating no outstanding director funding. Overall, the financial structure is stable but minimal, reflecting a micro entity with limited capital and asset base.

3. Cash Flow Assessment:
   Cash at bank stands at £7,920, sufficient to cover current liabilities of £5,045, providing a liquidity buffer. Positive net current assets signal adequate short-term financial health and working capital to meet obligations. However, the company’s cash reserves and working capital are small in absolute terms. The absence of detailed profit and loss information limits assessment of operating cash generation. Continuous cash flow monitoring is essential to ensure the company can service tax liabilities and operational expenses as it grows.

4. Monitoring Points:

• Track monthly cash flow closely to ensure liquidity remains positive and current liabilities are met timely.
• Monitor trading performance and profitability once P&L data becomes available to assess business viability and growth trajectory.
• Evaluate management’s ability to build working capital and control costs as the company scales.
• Watch for any changes in director or shareholder structure that could affect governance or financial support.
• Confirm timely filing of future accounts and confirmation statements to avoid regulatory penalties.