HOLMES IT MAINTENANCE LTD

Executive Summary

HOLMES IT MAINTENANCE LTD exhibits a stable financial position with positive working capital and net assets, indicative of healthy liquidity and low short-term risk. The company operates as a micro-entity with a small workforce and stable governance, positioning it well for continued steady performance. To further strengthen financial wellness, proactive cash flow management and strategic growth planning are recommended.

HOLMES IT MAINTENANCE LTD - Analysis Report

Company Number: 13454105

Analysis Date: 2025-07-20 18:24 UTC

Financial Health Assessment: HOLMES IT MAINTENANCE LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates stable and positive net current assets and net assets over the last three years, indicating a stable financial position typical for a micro-entity. The slight decline from £6,809 in 2023 to £6,588 in 2024 is minor and does not signify distress. However, the small scale of the business and relatively modest asset base limit the grade to a solid B rather than an A.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	8,087	Healthy level of liquid and short-term assets available to meet obligations.
Current Liabilities	2,287	Low short-term debt load, manageable obligations within the year.
Net Current Assets	6,588	Positive working capital ("healthy cash flow buffer"), indicating ability to cover short-term debts.
Net Assets / Shareholders Funds	6,588	Positive equity base, showing company’s net worth is stable and not eroded by liabilities.
Average Number of Employees	2	Small workforce consistent with micro-entity classification; low overhead likely.
Account Category	Micro	Simplified reporting; smaller scale operations with limited complexity.

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3. Diagnosis: What the Financial Data Reveals

• Stable Financial Condition: The company shows a consistent level of net assets and working capital over the last three years, with only minor fluctuations. This indicates a lack of financial distress symptoms such as deteriorating liquidity or increasing debt.

• Healthy Liquidity Position: With current assets approximately 3.5 times current liabilities, the company has a "healthy cash flow" profile, suggesting it can comfortably meet short-term obligations without strain.

• Small Scale Operations: As a micro-entity with only two employees, the company operates on a modest scale, which usually implies lower operational risks but also limited growth capacity unless scaled up.

• No Audit Requirement: Exemption from audit under small company provisions reduces compliance costs but may limit external scrutiny; internal controls and financial discipline are therefore important.

• Stable Ownership and Control: Directors and persons with significant control have been consistent since incorporation, suggesting stable governance and oversight.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Monitor Cash Flow Closely: Maintain the healthy working capital position by regularly reviewing receivables and payables to avoid any future liquidity strain.

• Explore Growth Opportunities: Consider strategies to gradually expand operations beyond micro-entity scale to improve profitability and resilience (e.g., marketing, partnerships).

• Strengthen Financial Reporting: Although audit exemption is in place, consider voluntary internal reviews or periodic external advice to catch any early warning signs of financial stress.

• Plan for Contingencies: Build a small cash reserve or access to credit lines as a safety net against unexpected expenses or downturns.

• Governance and Compliance: Continue ensuring timely filing of accounts and returns to avoid penalties and maintain good standing.

• Employee Development: With a small team, investing in employee skills and cross-training can improve operational efficiency and reduce key person risk.

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