HOLLYWOOD HOLDINGS WM LTD

Executive Summary

HOLLYWOOD HOLDINGS WM LTD demonstrates excellent financial health with strong liquidity and a solid capital base, reflecting effective management of resources. The company shows no signs of financial distress and has a promising outlook, although considerations around operational capacity could unlock further growth potential. Maintaining current strengths while strategically planning for expansion will support sustainable financial wellness.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

HOLLYWOOD HOLDINGS WM LTD - Analysis Report

Company Number: 13844960

Analysis Date: 2025-07-29 13:32 UTC

Financial Health Assessment Report for HOLLYWOOD HOLDINGS WM LTD


1. Financial Health Score: A

Explanation:
HOLLYWOOD HOLDINGS WM LTD presents a robust financial profile typical of a very healthy micro-entity. The company shows strong liquidity, negligible liabilities, and solid shareholder equity growth over a short operational period. This score reflects excellent short-term financial stability and sound capital structure with no apparent symptoms of distress.


2. Key Vital Signs

Metric 2024 Value (£) Interpretation
Current Assets 1,492,912 Very strong cash and short-term asset base; excellent liquidity
Current Liabilities 30 Negligible short-term debts; minimal financial obligations
Net Current Assets 1,492,912 Exceptionally healthy working capital; no immediate liquidity concerns
Net Assets (Equity) 1,492,882 Reflects strong shareholder funds and retained earnings
Shareholders’ Funds 1,492,882 Indicates strong capital backing and no significant debt
Employee Count 0 No staff costs, indicating low overheads but potential capacity constraints
Audit Status Exempt Micro-entity status with exemption from audit; standard for size

3. Diagnosis: Financial Condition and Symptoms Analysis

  • Liquidity: The company exhibits a "healthy cash flow" scenario with current assets vastly exceeding current liabilities. This is akin to a patient with a strong pulse and stable blood pressure—indicating no immediate financial stress.

  • Capital Structure: The net assets equal shareholders’ funds almost exactly, showing no long-term debt or hidden liabilities—a "heart" free from disease. This underpins the company’s ability to weather short-term shocks and invest in growth.

  • Operational Scale: The company employs no staff, which reduces fixed costs but may limit operational capacity or growth potential. This could be seen as a "low metabolic rate," efficient but potentially restrictive if expansion is desired.

  • Growth Trend: A noticeable increase in current assets and net assets from £1.1m in 2023 to nearly £1.5m in 2024 signals positive financial growth and strengthening balance sheet health.

  • Compliance: The company is up to date with filing deadlines and enjoys audit exemption typical for micro entities, indicating good governance and compliance—akin to regular health check-ups without complications.


4. Recommendations: Path to Continued Financial Wellness

  • Maintain Strong Liquidity: Continue prudent cash management to preserve the current "healthy circulation" of funds. Avoid unnecessary short-term liabilities to sustain excellent working capital.

  • Consider Operational Capacity: Review whether the lack of employees is strategic or a constraint. If growth or operational expansion is planned, investing in human resources or outsourcing could improve performance.

  • Monitor Asset Quality: Ensure that current assets, likely cash or equivalents, are secure and productive. Diversifying asset usage might improve return on capital without compromising liquidity.

  • Plan for Growth: Use the strong financial base as a "healthy foundation" to explore new business opportunities or investments that can improve profitability and resilience.

  • Maintain Compliance: Keep up with timely filings and governance to avoid penalties or reputational risk—akin to maintaining a healthy lifestyle to prevent illness.



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