HOBSON ECOMMERCE LTD

Executive Summary

HOBSON ECOMMERCE LTD is financially stable with positive net assets and manageable liabilities, reflecting a generally healthy small business. However, a notable decline in current assets signals early liquidity concerns that require close management of cash flow and working capital. With prudent financial controls and strategic planning, the company is well-positioned to maintain and improve its financial wellness.

HOBSON ECOMMERCE LTD - Analysis Report

Company Number: 13124575

Analysis Date: 2025-07-29 20:21 UTC

Financial Health Assessment for HOBSON ECOMMERCE LTD

---

1. Financial Health Score: B

Explanation:
HOBSON ECOMMERCE LTD demonstrates a generally stable financial position characteristic of a micro-entity with modest operations. The company has maintained positive net assets and shareholders’ funds over its three years of existence. However, the recent decline in current assets and presence of short-term creditors indicate some mild liquidity constraints that warrant close monitoring. Overall, the company's financial "pulse" is steady but with early "symptoms" suggesting attention to working capital management is needed to ensure ongoing health.

---

2. Key Vital Signs

Metric	Latest Value (2024)	Interpretation
Current Assets	£5,897	Indicates available liquid resources; decreased from £13,233 in 2023, signaling reduced short-term liquidity.
Current Liabilities	£655	Relatively low short-term debts, manageable in size.
Net Current Assets (Working Capital)	£5,897	Positive and healthy; company can cover immediate debts with current assets.
Total Net Assets	£4,712	Positive equity, an indicator of solvency and cushion against losses.
Shareholders Funds	£4,712	Reflects retained earnings and capital invested; slight growth since inception.
Share Capital	£1.00	Minimal capital invested; typical for micro-entities.
Average Employees	1	Very small operation, minimal overheads.
Creditors > 1 Year	£655	Some longer-term liabilities exist but are relatively minor.
Provisions & Accruals	£530 (combined)	Normal operating accruals and provisions, not excessive.

---

3. Diagnosis

HOBSON ECOMMERCE LTD is akin to a young adult business in generally good health but showing early signs of stress related to liquidity. The company operates in the retail footwear sector, and its micro-entity status reflects modest scale and simplified reporting requirements.

• Healthy Signs:

  • Positive net current assets indicate the company can meet its short-term obligations without strain.
  • Net assets and shareholders’ funds have grown over time, signaling value retention and some profitability or capital infusion.
  • No overdue filings or compliance issues reflect good administrative health.
  • Minimal employee count aligns with low fixed costs, reducing financial pressures.

• Symptoms of Distress:

  • Current assets have declined sharply from £13,233 to £5,897 within one year, possibly due to lower cash or stock levels.
  • Creditors have decreased but still present, suggesting some reliance on short-term credit.
  • The small scale and thin share capital mean the company has limited financial buffer to absorb shocks.

Overall, the company is solvent and can cover immediate liabilities, but the shrinking liquidity "pulse" should be watched carefully. The business's "immune system" can handle current challenges but may be vulnerable to operational disruptions or unexpected expenses without increased cash reserves or better working capital management.

---

4. Recommendations

To strengthen the financial wellness and ensure sustainable growth, HOBSON ECOMMERCE LTD should consider the following actions:

• Improve Cash Flow Management:

  • Monitor receivables and payables closely to enhance cash inflows and delay outflows where possible.
  • Explore measures to convert inventory into sales more quickly to boost current assets.

• Build Financial Reserves:

  • Retain earnings or inject additional capital to increase the financial buffer and reduce reliance on creditors.
  • Consider small financing options if expansion or inventory build-up is planned.

• Cost Control:

  • Maintain tight control on operating expenses given the small scale to maximize profitability and cash retention.

• Regular Financial Review:

  • Conduct monthly cash flow forecasting to anticipate liquidity needs and avoid surprises.
  • Keep an eye on creditors and provisions to ensure liabilities are manageable.

• Strategic Growth Planning:

  • Evaluate market positioning and sales channels to grow revenue steadily without overextending resources.

By addressing these areas, the company can strengthen its "cardiovascular system" of cash flow and working capital, ensuring a robust and resilient financial condition.

---