HQ GAS-HEATING SOLUTIONS LTD

Executive Summary

HQ Gas-Heating Solutions Ltd currently maintains a solid financial position with positive net assets and adequate working capital, reflecting a stable and solvent business. While the company’s financial health is generally good for a micro-entity, slight decreases in net assets and fixed assets indicate the need for careful monitoring and strategic improvement in liquidity and equity. Strengthening working capital and enhancing profitability will improve resilience and support sustainable growth.

HQ GAS-HEATING SOLUTIONS LTD - Analysis Report

Company Number: 13275743

Analysis Date: 2025-07-29 21:05 UTC

Financial Health Assessment for HQ GAS-HEATING SOLUTIONS LTD (As of 31 March 2025)

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1. Financial Health Score: B

Explanation:
HQ Gas-Heating Solutions Ltd shows generally stable financial health with positive net assets and working capital, indicating a "healthy pulse" in financial terms. However, a slight decline in net assets and total assets less current liabilities compared to the prior year suggests some caution. The company maintains adequate liquidity and equity but is small-scale with minimal share capital, which limits financial flexibility. Overall, the company is financially sound but should monitor trends closely.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2025 Value (£)	Interpretation
Fixed Assets	6,709	Slight decrease; modest investment in long-term assets. Healthy for a micro business.
Current Assets	2,075	Increased from last year; indicates improved short-term asset base.
Cash	Not separately disclosed in 2025, but previous stable cash balance.	Cash remains positive, supporting day-to-day operations.
Current Liabilities	1,463	Slight increase; manageable short-term obligations.
Net Current Assets (Working Capital)	612	Positive working capital suggests sufficient liquidity to cover short-term debts—a sign of financial "vitality."
Total Assets Less Current Liabilities	7,321	Slight decline; overall asset base after short-term debts remains solid.
Net Assets (Shareholders' Funds)	6,821	Positive net worth indicates business equity and solvency. Slight year-on-year drop to monitor.
Share Capital	1.00	Minimal capital injection; typical for micro-entity but limits cushion.

Additional Observations:

• The company employs 1 person (director), consistent with micro-entity status.
• Exempt from audit, which is common for micro businesses.
• No overdue filings, indicating good compliance health.

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3. Diagnosis (What the Numbers Reveal)

HQ Gas-Heating Solutions Ltd shows signs of a generally healthy financial body. The positive net current assets (working capital) indicate that the company has enough short-term resources to meet immediate liabilities—akin to a healthy cash flow "heartbeat." The positive net assets confirm the company is solvent and holds equity beyond its liabilities.

However, the slight year-on-year decrease in net assets and total assets less current liabilities suggests a mild symptom of resource depletion or increased liabilities that warrants monitoring. The fixed assets have decreased slightly, which might indicate asset disposals or depreciation outpacing new investment.

The minimal share capital is standard for micro businesses but leaves little financial "buffer" for shocks. The company seems to be operating within its means but with tight margins, typical of small service firms in installation trades.

No indications of financial distress such as excessive current liabilities or negative net assets are present, which bodes well for the short-term outlook.

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4. Recommendations (Steps to Improve Financial Wellness)

• Strengthen Working Capital: Although positive, working capital is modest. The company should aim to improve cash reserves or manage payables and receivables more aggressively to build a stronger liquidity buffer.
• Monitor Asset Base: The decline in fixed assets should be reviewed. Consider investing strategically in tools or equipment that could improve operational efficiency and competitive positioning.
• Increase Shareholder Equity: Explore opportunities for capital injection or retained earnings growth to build equity, thereby enhancing financial resilience.
• Cost Control and Profitability: Maintain tight control over expenses to prevent erosion of net assets. Improved profitability will directly enhance retained earnings and net worth.
• Financial Planning and Forecasting: Develop forward-looking cash flow forecasts and budgets to anticipate financing needs and avoid surprises.
• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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