HIGHFIELDS MANAGEMENT COMPANY (NETHER KELLET) LIMITED

Executive Summary

Highfields Management Company (Nether Kellet) Limited shows stable financial health with positive working capital and consistent operations but operates on a minimal equity base, making it financially fragile. While short-term liquidity is healthy, increasing equity reserves and careful management of deferred income are recommended to strengthen long-term resilience. The company is currently in a stable position but should focus on building financial buffer to safeguard future operations.

HIGHFIELDS MANAGEMENT COMPANY (NETHER KELLET) LIMITED - Analysis Report

Company Number: 12752025

Analysis Date: 2025-07-29 16:54 UTC

Financial Health Assessment for Highfields Management Company (Nether Kellet) Limited

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1. Financial Health Score: C

Explanation:
The company displays a stable but very modest financial position with positive net current assets and a small but consistent equity base. However, the extremely low net assets (£4) and limited financial scale typical of a micro-entity suggest a fragile financial health status. The score C reflects a company that is currently stable but with minimal financial buffer and limited growth capital.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	685	237	Healthy increase, indicates better liquidity (cash/debtors).
Current Liabilities	381	83	Increased short-term obligations; manageable but rising.
Net Current Assets	304	154	Positive working capital, a healthy "cash flow pulse".
Accruals and Deferred Income	300	150	Growing deferred income may indicate future revenue recognition.
Net Assets / Shareholders Funds	4	4	Extremely low equity base; minimal financial "immune system".
Average Employees	4	4	Stable workforce size, indicates operational consistency.

Interpretation:

• The company's liquidity (current assets vs current liabilities) shows a positive working capital, which is a good sign of the ability to meet short-term obligations.
• The growth in current assets is a positive symptom, suggesting improved cash or receivables.
• However, net assets remain virtually flat and minimal, indicating very little retained earnings or capital buffer.
• Deferred income doubled, which may represent fees received in advance and future obligations.

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3. Diagnosis

Highfields Management Company (Nether Kellet) Limited is a micro-entity operating in property management, with a small capital base (£4 share capital) and limited financial resources. The company exhibits symptoms of financial stability with positive working capital and no overdue filings or regulatory issues.

The healthy cash flow signs (increased current assets and net current assets) suggest the company is managing short-term finances well. However, the very low net assets indicate the business operates with a minimal equity cushion, making it vulnerable to unexpected expenses or downturns.

The increased accruals and deferred income show the company is receiving funds in advance, which is typical in property management contracts but also represents a liability to deliver services.

The business has maintained a consistent employee count and has no signs of financial distress like overdue accounts or liabilities exceeding assets.

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4. Recommendations

• Build Equity Reserves: Consider strategies to increase retained earnings or inject additional capital to strengthen the equity base, improving resilience against financial shocks.

• Monitor Deferred Income: Ensure that services linked to deferred income are delivered timely to avoid future financial strain.

• Cash Flow Management: Continue monitoring liquidity closely; maintain or improve working capital to ensure ongoing operational health.

• Growth Planning: Explore opportunities for revenue growth to enhance financial scale beyond micro-entity thresholds, which will also aid in building financial buffers.

• Financial Reporting: Maintain timely and accurate filings to preserve good standing and avoid penalties.

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