Company Number: 13124412

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

1. Credit Opinion: CONDITIONAL APPROVAL
   HSI CONSULTANTS LTD demonstrates modest but improving financial health since incorporation in 2021. The company shows positive net current assets and net assets, with solvency improving from £47 in 2021 to £5,213 in 2024. However, the small scale of operations, limited share capital (£1), and low absolute levels of assets and cash balances indicate limited financial buffer. The company’s ability to service debt is currently adequate, but caution is advised until consistent growth and liquidity improvements are sustained. Approval may be granted with conditions such as monitoring liquidity and requiring updated financials before increasing credit exposure.

2. Financial Strength:
   The balance sheet is stable with net assets of £5,213 as of January 2024, up from £3,052 the prior year. Current assets (£8,334) comfortably exceed current liabilities (£3,121), yielding a healthy net current asset position (£5,213). The share capital is minimal (£1), meaning equity is primarily retained earnings, reflecting small profits retained in the business. The company has no long-term liabilities disclosed, indicating low gearing risk. Overall, the financial position is sound for a micro/small entity, but scale is limited.

3. Cash Flow Assessment:
   Cash holdings decreased from £11,223 in 2023 to £8,134 in 2024 but remain sufficient to cover short-term obligations. Debtor levels are low (£200), implying limited credit risk from customers and quick cash conversion. Creditors have reduced significantly from £8,321 to £3,121, improving working capital management. The company operates with only 1 employee and likely has low fixed costs, supporting liquidity. Cash flow appears adequate for current operations but should be carefully monitored to avoid cash strain.

4. Monitoring Points:

• Liquidity trends: monitor cash and net current assets to ensure continued coverage of liabilities.
• Profitability and retained earnings growth to build equity and buffer.
• Debtor and creditor days to assess working capital efficiency.
• Director’s ongoing engagement and governance given sole control by Mr. Sajid Hussain.
• Filing of future accounts and confirmation statements on time to ensure compliance risks are minimized.