Company Number: 13322990

Analysis Date: 2025-07-29 15:49 UTC

1. Risk Rating: LOW
   HHQ LTD demonstrates a stable solvency position and positive working capital, with no overdue filings and no regulatory compliance issues evident. The company shows net profits and positive net assets, indicating a low risk of default on obligations.

2. Key Concerns:

• Declining Turnover: Turnover has decreased from £19,775 in 2023 to £13,750 in 2024, which could signal reduced operational activity.
• Single Director and Employee: The company is run by one director and employs only one person, which may pose operational continuity risks.
• Modest Profit Margins: The net profit of £2,015 on a turnover of £13,750 is relatively low, suggesting limited buffer for unforeseen expenses or investment.

3. Positive Indicators:

• Strong Net Current Assets: The company holds £17,466 in net current assets, reflecting good short-term liquidity.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating sound regulatory compliance.
• Positive Shareholders' Funds: Shareholders’ funds have increased from £15,452 to £17,466, showing retained earnings and growing equity.
• No Debt Beyond Current Liabilities: There are no long-term liabilities, reducing solvency risk.

4. Due Diligence Notes:

• Investigate the Cause of Turnover Decline: Understand reasons behind the revenue decrease and assess sustainability of current business volume.
• Assess Director’s Capacity and Succession Planning: Given the single director structure and sole employee, evaluate operational risks if the director becomes unavailable.
• Review Profitability Trends and Cost Structure: Examine detailed expense breakdowns and future projections to ensure operational stability.
• Confirm Absence of Off-Balance Sheet Liabilities: Although none disclosed, verify if any contingent liabilities exist that could impact financial health.