HOOKS CONTRACTS LTD

Executive Summary

HOOKS CONTRACTS LTD is a financially healthy start-up with positive liquidity and solvency indicators typical of a micro-entity in its first year. While the company shows no distress symptoms and good compliance, it should focus on growing revenue, diversifying governance, and maintaining working capital discipline to ensure sustainable future health.

HOOKS CONTRACTS LTD - Analysis Report

Company Number: 15440698

Analysis Date: 2025-07-20 12:24 UTC

Financial Health Assessment of HOOKS CONTRACTS LTD

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1. Financial Health Score: B

Explanation:
HOOKS CONTRACTS LTD demonstrates a solid start-up financial position typical for a micro-entity in its first year. The company exhibits positive net current assets and net assets, indicating a stable foundation. However, being a newly incorporated business with limited historical data and no audit, certain risks and uncertainties remain. The absence of liabilities beyond short-term creditors and positive shareholders’ funds are encouraging signs, but more time and operational data are needed for a higher grade. Hence, a "B" reflects a generally healthy but early-stage financial status with room for growth and monitoring.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	45,542	Healthy short-term resource base, primarily cash or receivables, indicating liquidity.
Current Liabilities	27,447	Short-term obligations that are manageable given current asset levels.
Net Current Assets	18,095	Positive working capital ("healthy cash flow reserve"), suggesting the company can cover short-term debts comfortably.
Net Assets (Shareholders’ Funds)	18,095	Positive equity indicating the company is solvent with assets exceeding liabilities.
Number of Employees	1	Small workforce consistent with micro-entity status; low fixed overhead cost base.
Company Age	~1 year	Very early stage; financials reflect start-up phase with limited trading history.
Ownership & Control	75-100% held by Dan Groza	Clear control structure with a single significant controller, enabling quick decision-making but concentration risk.

Industry Context:
The company operates in management consultancy (non-financial) and floor/wall covering activities, sectors that may require both professional expertise and inventory management. This diversification may provide resilience but also operational complexity.

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3. Diagnosis

Symptoms Analysis:

• The company shows "healthy cash flow" signals with more current assets than current liabilities, meaning it can meet immediate financial obligations without stress.
• Positive net assets indicate no over-leverage or insolvency symptoms at this stage.
• The size and scale (micro-entity, 1 employee) suggest simplicity in operation, reducing complexity risks.
• The lack of audit and short trading history means financials have not been externally verified, so some caution is warranted.
• No off-balance sheet liabilities or contingent risks were disclosed, which is a positive sign.
• Sole director and 100% owner status creates clear accountability but also dependency risk on a single individual.
• Filing deadlines are met, indicating good compliance and governance discipline.

Underlying Health:
HOOKS CONTRACTS LTD is in a stable "start-up health" condition. There is no evidence of financial distress or operational red flags. The company maintains adequate liquidity and solvency, which are vital signs of a healthy financial "heart." However, it remains vulnerable to early-stage risks such as limited revenue diversification, reliance on owner-director, and the need to build operational scale.

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4. Recommendations

To improve and sustain financial wellness:

• Build Revenue Streams: Focus on increasing turnover steadily to strengthen cash inflows and reduce start-up volatility.
• Monitor Working Capital: Keep a close eye on receivables and payables to maintain positive net current assets and avoid liquidity symptoms.
• Consider Formal Audit: As the business grows, commissioning an audit can enhance credibility and identify financial control improvements.
• Diversify Management: Consider appointing additional directors or advisors to reduce concentration risk and enhance governance.
• Plan for Growth Capital: Evaluate funding options early to finance expansion without compromising solvency.
• Maintain Compliance Discipline: Continue timely filings and record keeping to avoid regulatory symptoms such as penalties or reputational damage.
• Focus on Industry Synergies: Leverage expertise in both consultancy and floor/wall covering to cross-sell services and build a competitive moat.

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