HYDRO HELP LTD

Executive Summary

Hydro Help Ltd is a newly established micro-entity with a clean balance sheet and positive working capital, demonstrating initial financial stability and no debt. While credit approval is recommended, credit limits should be conservative due to lack of trading history and operational data. Monitoring of cash flow, revenue generation, and compliance filings will be critical to reassess credit risk as the company develops.

HYDRO HELP LTD - Analysis Report

Company Number: 14849816

Analysis Date: 2025-07-29 18:00 UTC

1. Credit Opinion: APPROVE
   Hydro Help Ltd is a newly incorporated micro-entity with no liabilities and positive net current assets, indicating a clean balance sheet and initial working capital sufficiency. Although the company is in its first year with limited financial history and no employees, the absence of debt and positive equity supports its ability to meet short-term obligations. The director holds full control, suggesting aligned management incentives and clear accountability. Given the lack of trading history and fixed assets, credit approval is recommended with conservative limits and monitoring until more operational data is available.

2. Financial Strength:
   The company’s micro-entity balance sheet as of 31 May 2024 shows total net assets of £3,600, composed entirely of net current assets (£3,500) and minimal called-up share capital (£100). No fixed assets or long-term liabilities are recorded. This indicates a very early-stage company, currently funded by equity with no debt burden. The clean liability profile reduces financial risk, but the absence of tangible assets limits collateral availability.

3. Cash Flow Assessment:
   Current assets primarily consist of prepayments and accrued income (£3,500), with no creditors or current liabilities, resulting in positive working capital. There is no reported cash or bank balances disclosed explicitly, but the net current asset position suggests liquidity is currently sufficient to meet immediate obligations. However, cash flow generation from operations is unproven due to the lack of trading activity and employees. Close attention should be paid to cash flow trends as business operations commence.

4. Monitoring Points:

• Trading performance and revenue generation in forthcoming periods to assess sustainability.
• Cash flow statements once available to evaluate liquidity and working capital management.
• Any incurrence of liabilities or debt and how they are serviced.
• Changes in director or shareholding structure that may affect control or financial strategy.
• Timely filing of accounts and confirmation statements to ensure ongoing compliance and transparency.