Company Number: 13879083

Analysis Date: 2025-07-29 14:57 UTC

1. Credit Opinion: APPROVE. Hughesworks Ltd presents a solid micro-entity profile with consistent growth in net assets and working capital over the last three years. The company demonstrates sound financial stewardship with positive equity and no overdue filings. The directors hold significant ownership stakes and appear actively engaged. The business operates in a niche service sector, which may have modest volatility but currently shows stable financial footing.

2. Financial Strength: The balance sheet shows steady improvement:

• Net assets increased from £3.3k in 2022 to £34.6k in 2025.
• Fixed assets are minimal but growing (£512 to £1,386).
• Shareholders’ funds rose accordingly, reflecting retained earnings or capital injections.
• The company maintains a low leverage profile with no long-term liabilities reported. This reflects a conservative capital structure and prudent financial management appropriate for a micro-sized entity.

3. Cash Flow Assessment:

• Current assets grew substantially (£15.7k to £52.6k), driven largely by cash or equivalents and receivables.
• Current liabilities also rose but more modestly (£12.9k to £18.1k), resulting in strong net current assets (£2.8k to £34.5k).
• Working capital levels are healthy and improving, indicating the company can meet short-term obligations comfortably.
• No audit exemption suggests limited complexity but also that controls and financial reporting are adequate.

4. Monitoring Points:

• Monitor continued growth in working capital and net assets to ensure liquidity remains strong.
• Watch for any increase in liabilities or overdraft usage that may strain cash flow.
• Keep an eye on the company’s ability to generate consistent operating cash flow as data on profitability is limited.
• Maintain oversight of the directors’ ongoing involvement and any changes in ownership/control.
• Review future filings for any changes in financial or operational risk profiles, especially given the small scale of operations.