HOWARDS SERVICES LTD

Executive Summary

Howards Services Ltd has an active trading status with positive net assets but experienced a significant decline in financial strength and liquidity in its latest financial year. Credit extension is feasible on a conditional basis, contingent on close monitoring of cash flow and capital restoration efforts. The company’s limited size and current financial contraction warrant caution and regular review.

HOWARDS SERVICES LTD - Analysis Report

Company Number: 13654394

Analysis Date: 2025-07-29 16:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Howards Services Ltd demonstrates positive net assets and shareholder funds, indicating an equity buffer. However, there is a significant decline in current assets and net assets in the latest year (2024) compared to prior years, which suggests financial stress or operational challenges. The company is small, with minimal employees and micro-entity reporting, limiting detailed financial insights. While the company remains active and compliant with filings, the sharp reduction in working capital requires cautious credit extension, potentially with limits or covenants.

2. Financial Strength:
   The balance sheet shows a decrease in net assets from £21,181 in 2023 to £4,532 in 2024, reflecting a substantial erosion of equity. Current assets dropped from £12,969 to £3,355, and current liabilities decreased but remain negative in 2024 (£-2,077). The company maintains positive net current assets (£5,432) and shareholder funds, but the contraction signals liquidity tightening or possible asset write-downs. The business remains solvent but lacks financial robustness.

3. Cash Flow Assessment:
   Cash and debtor data for 2024 is limited, but the prior year showed £12,969 in cash and £15,414 in debtors. The current year’s low current assets imply reduced liquid resources and receivables. Net current assets remain positive, suggesting short-term obligations are covered, but the significant drop in working capital is a warning. The company employs only one person, which limits overhead but may constrain operational capacity and cash generation.

4. Monitoring Points:

• Track quarterly updates on cash balances and receivables to monitor liquidity trends.
• Watch for any further decline in net assets or working capital in subsequent filings.
• Monitor management’s ability to restore profitability and cash flow generation.
• Review any changes in director or ownership structure, given sole control by Mr. Glenn Howard.
• Assess impact of industry conditions and any contingent liabilities disclosed in future reports.