HJ VISION LIMITED

Executive Summary

HJ Vision Limited shows improving financial strength with solid liquidity and growing equity, supporting its ability to meet credit obligations. The company’s strong cash position and positive working capital mitigate short-term risks, making it a suitable candidate for credit approval. Ongoing monitoring should focus on maintaining cash flow efficiency and safeguarding profitability amid sector dynamics.

HJ VISION LIMITED - Analysis Report

Company Number: 13266622

Analysis Date: 2025-07-29 15:16 UTC

1. Credit Opinion: APPROVE
   HJ Vision Limited demonstrates strong liquidity and improving financial health with consistent growth in net assets and working capital over the last three years. The company operates in a specialist medical practice sector, which tends to have stable demand. The directors have maintained timely filings, and there is no indication of financial distress or governance issues. The firm's ability to generate cash and maintain positive net current assets supports its capacity to service debt obligations. Approval is recommended for modest credit facilities, with consideration for the company's size and operational scale.

2. Financial Strength:
   The company has shown notable growth in shareholders’ funds from £66.6k in 2021 to £227.1k in 2024, primarily driven by accumulated profits retained in the business. Fixed assets are minimal (£881), consistent with a service-oriented business, while current assets have more than doubled from £126.2k in 2023 to £280.6k in 2024, largely due to increased cash balances (£234k). Current liabilities remain modest relative to assets, resulting in a strong net current asset position (£226.2k). Overall, the balance sheet is robust with a strong equity base and low gearing risk.

3. Cash Flow Assessment:
   The company holds a strong cash position (£234k) relative to current liabilities (£54k), providing a comfortable liquidity buffer. Debtors are well managed at £46.6k, supporting ongoing cash inflows. The positive working capital (£226k) signals healthy operational liquidity, indicating the company should not face short-term funding pressures. The absence of significant debt or loans further reduces financial risk. Cash flow from operations appears sufficient to cover liabilities and any new credit facility repayment commitments.

4. Monitoring Points:

• Continued monitoring of cash conversion cycles and debtor days to ensure liquidity remains strong.
• Tracking profitability trends in future filings to confirm sustained earnings growth.
• Watch for any increase in short-term liabilities or contingent obligations that may affect working capital.
• Monitor sector-specific risks in the medical practice industry that could affect demand or reimbursement rates.