H&N CC LIMITED

Executive Summary

H&N CC LIMITED is currently in a fragile financial state characterized by negative net assets and working capital, indicating limited liquidity and accumulated losses. While the company remains compliant and active, it shows symptoms of financial distress that require strategic financial and operational interventions to improve stability and ensure sustainability.

H&N CC LIMITED - Analysis Report

Company Number: 12764951

Analysis Date: 2025-07-29 19:00 UTC

Financial Health Assessment for H&N CC LIMITED

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1. Financial Health Score: Grade D

Explanation:
The company exhibits persistent negative net current assets and shareholders' funds, indicating a financial strain. While it remains operational and compliant with filings, the balance sheet shows signs of distress, notably net liabilities. The absence of employees and limited turnover data suggest minimal operational activity or early-stage development. Overall, the company’s financial health is weak, requiring attention to avoid further deterioration.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank	1,531	A modest cash reserve indicating limited liquidity.
Current Liabilities	1,696	Obligations due within one year, slightly exceeding cash reserves.
Net Current Assets (Working Capital)	-165	Negative, indicating the company may struggle to cover short-term debts with current assets.
Net Assets (Total Assets - Total Liabilities)	-165	Negative net worth, showing liabilities exceed assets, a symptom of financial distress.
Shareholders' Funds (Equity)	-169	Negative equity suggests accumulated losses or insufficient capital injection.
Employees	0	No staff employed, possibly indicating minimal or no business operations currently.
Turnover Information	Not disclosed in accounts	Lack of turnover data may indicate minimal or no revenue generation.
Account Category	Total Exemption Full	Filing under small company regime, with limited disclosure but compliant with regulations.

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3. Diagnosis

H&N CC LIMITED's financial "vital signs" reveal symptoms akin to a patient with a weakened circulatory system—there is insufficient liquidity to comfortably meet immediate obligations (negative working capital) and a negative net asset position indicating long-term financial strain. The company's cash reserves are marginally below current liabilities, which could hinder operational flexibility and prompt financial stress if liabilities are called in or if expenses arise unexpectedly.

The negative shareholders' funds highlight accumulated losses, signaling that the company either started with minimal capital or has experienced financial losses since inception. The absence of employees and reported turnover data suggests limited operational activity, which might explain stagnant financial figures over multiple years.

While the company remains compliant with filing deadlines and is not undergoing insolvency procedures, the financial "symptoms" suggest a fragile state. Without intervention, these indicators could progress to more severe financial distress.

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4. Recommendations

• Improve Liquidity: Enhance cash reserves through capital injection or improved cash flow management to ensure current liabilities can be met without strain.

• Operational Review: Evaluate the business model and revenue-generating activities. If the company is dormant or inactive, consider reactivation plans or formal dormancy to reduce ongoing costs.

• Cost Control: Minimize fixed and variable costs, especially if no active revenue streams exist, to conserve cash.

• Capital Structure Adjustment: Consider capital restructuring or equity infusion from shareholders to restore positive net assets and strengthen the balance sheet.

• Financial Monitoring: Implement regular financial health reviews and cash flow forecasting to detect early signs of distress and react promptly.

• Stakeholder Communication: Maintain transparent communication with creditors and shareholders about financial status and recovery plans.

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