HSEQ SUPPORT LTD

Executive Summary

HSEQ SUPPORT LTD shows a strong financial foundation with growing assets and equity, and sufficient liquidity to meet short-term obligations. The company is in a stable growth phase but should carefully manage rising liabilities and monitor the returns on its increased fixed asset investments. Overall, the financial health is good with a positive outlook, provided prudent financial controls remain in place.

HSEQ SUPPORT LTD - Analysis Report

Company Number: 13792416

Analysis Date: 2025-07-20 16:59 UTC

Financial Health Assessment of HSEQ SUPPORT LTD as of 31 March 2024

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1. Financial Health Score: B

Explanation:
HSEQ SUPPORT LTD demonstrates solid signs of financial growth and improving stability. Key financial metrics show healthy asset growth, positive net current assets, and increasing shareholders’ funds, indicative of strengthening equity. However, the presence of long-term liabilities and limited profitability disclosure signals caution. This company is financially sound but should manage liabilities prudently to maintain health.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	63,250	1,489	Significant investment in long-term assets, suggests growth focus.
Current Assets	52,453	28,569	Healthy increase in liquid and near-liquid assets.
Current Liabilities	40,354	18,740	Current debts have increased; caution warranted.
Net Current Assets	25,626	9,923	Positive working capital indicates liquidity comfort.
Net Assets / Shareholders’ Funds	48,522	11,412	Equity has grown substantially, signaling retained earnings and capital injection.
Employees	2	2	Stable workforce; small size consistent with micro entity status.
Account Category	Micro	Micro	Simplified reporting, typical for small-scale operations.

Interpretation:

• The company’s healthy net current assets ("healthy cash flow" equivalent) mean it can cover short-term obligations comfortably — a vital sign of liquidity strength.
• The sharp rise in fixed assets suggests investment in infrastructure or equipment, which may support future revenue growth but also implies capital expenditure that must be managed carefully.
• The increase in current liabilities is a symptom to watch; rising short-term debts could stress liquidity if not balanced by cash inflows.
• The net assets growth is a solid indicator of financial resilience and retained earnings, reflecting profitability or capital contributions.

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3. Diagnosis: Financial Condition

HSEQ SUPPORT LTD appears to be in a stable and growing financial condition with clear signs of business expansion:

• Asset Base Growth: The significant jump in fixed assets shows the company has invested in resources that will potentially enhance productivity or capacity.
• Liquidity Position: Positive net current assets reflect a "healthy cash flow" posture, meaning the company is not showing symptoms of immediate financial distress.
• Leverage: The company has started to carry long-term liabilities (£40,354), which requires monitoring to avoid overextension.
• Profitability Insight: Profit and loss details are not disclosed, typical for micro-entities. However, the increased shareholders’ funds suggest the company is retaining earnings or has received equity funding.

There are no symptoms of distress such as negative working capital, falling equity, or overdue filings. The company is young (incorporated in 2021), so growth trajectory is positive though early stage risks remain.

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4. Recommendations

To maintain and improve financial wellness, HSEQ SUPPORT LTD should consider the following specific actions:

• Manage Liabilities Prudently: Monitor and plan for repayment of increasing current and long-term liabilities. Avoid excessive short-term borrowing to maintain liquidity.
• Cash Flow Forecasting: Implement robust cash flow management to anticipate liquidity needs, especially with rising fixed assets investment, ensuring smooth operation without cash shortages.
• Profitability Monitoring: Although detailed P&L is not filed, internally track profitability metrics to ensure that asset investments translate into sustainable earnings.
• Growth Strategy Review: Assess the return on fixed asset investments periodically to confirm that capital expenditure supports revenue growth and does not strain finances.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid legal penalties and ensure transparency.
• Consider Audit or Review: As the company grows, consider voluntary audit or financial reviews to provide stakeholders with added assurance on financial health.

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