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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