HYMIR LTD

Executive Summary

HYMIR LTD exhibits solid financial health with strong liquidity and net assets typical of a micro-entity holding company. A moderate decline in net assets calls for closer examination but does not currently indicate distress. Maintaining vigilant financial monitoring and enhancing reporting transparency will support continued stability and informed decision-making.

HYMIR LTD - Analysis Report

Company Number: 13275409

Analysis Date: 2025-07-20 18:08 UTC

Financial Health Assessment Report: HYMIR LTD

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1. Financial Health Score: B

Explanation:
HYMIR LTD demonstrates a generally strong financial position typical of a micro-entity holding company with solid net assets and low liabilities. The company maintains a healthy working capital position, indicating good liquidity. However, a slight decline in current assets and net assets over the last year signals a mild symptom of financial contraction that warrants monitoring. The absence of profit and loss data limits a full profitability diagnosis, but balance sheet indicators suggest financial stability rather than distress.

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2. Key Vital Signs:

Metric	2024 Value (£)	Interpretation
Current Assets	190,555	Represents the company's liquid resources and receivables; healthy but declined from prior year.
Current Liabilities	1,968	Very low short-term debts, indicating minimal immediate financial obligations.
Net Current Assets	188,587	Strong positive working capital, a "healthy cash flow" indicator ensuring short-term solvency.
Shareholders' Funds	188,587	Represents net assets owned by shareholders; slight decrease compared to £242,216 in 2023.
Share Capital	102	Minimal capital injection, typical for holding companies.
Employees	0	No employees, consistent with holding company status—low operational overhead.
Filing Status	Up to date	No overdue accounts or confirmation statements, indicating good compliance and governance.

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3. Diagnosis:

HYMIR LTD’s financial "vital signs" show a company with robust liquidity and substantial net assets relative to its micro-entity size. The working capital ratio (current assets vs current liabilities) is exceptionally strong, indicating a "healthy cash flow" environment with no immediate risk of liquidity distress.

However, a noticeable reduction of approximately £51,629 (around 21%) in both current assets and shareholders’ funds from 2023 to 2024 suggests "symptoms of financial contraction." This could indicate distributions to shareholders, asset disposals, or reduced investment returns typical for holding companies, but without profit and loss data, the underlying cause remains unclear.

The company’s structure—with no employees and minimal share capital—reflects a streamlined entity focused on asset holding rather than trading. The current director holds significant control, which can be a strength or risk depending on governance practices.

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4. Recommendations:

A. Investigate the Decline in Net Assets and Current Assets:

• Review internal records or management accounts to understand the reason for the decline.
• Ensure that reductions are not due to operational losses or unrecoverable debts.

B. Maintain Strong Liquidity:

• Continue to monitor working capital to avoid any future liquidity crunch.
• Keep current liabilities low and manage cash flow prudently.

C. Enhance Transparency:

• Consider voluntarily preparing and presenting profit and loss accounts for better insight into profitability trends and operational performance.
• This will help diagnose "symptoms" of financial health more precisely.

D. Governance and Control:

• Given the high concentration of control in one individual, implement appropriate checks and balances to mitigate governance risks.
• Periodic external reviews or advisory can provide independent oversight.

E. Future Planning:

• If the company intends to expand or take on more operational roles beyond holding, reassess financial and staffing needs accordingly.
• Maintain compliance with filing deadlines to avoid penalties and preserve reputation.

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