HYPERION LIVE LIMITED

Executive Summary

HYPERION LIVE LIMITED is financially solvent with a positive but very narrow working capital and minimal net assets, typical of an early-stage micro-entity in the software development sector. The company should focus on strengthening equity and closely managing cash flow to build resilience and support future growth. Increased transparency on profitability will aid in diagnosing operational health more effectively.

HYPERION LIVE LIMITED - Analysis Report

Company Number: 14402225

Analysis Date: 2025-07-20 18:15 UTC

Financial Health Assessment for HYPERION LIVE LIMITED (as at 31 October 2023)

---

1. Financial Health Score: C

Explanation:
HYPERION LIVE LIMITED shows a modestly positive financial position for a micro-entity in its first full accounting period. The company maintains positive net current assets and net assets, indicating it is not insolvent. However, its net asset base is very small (£861), and working capital is minimal (£1,677), which signals a fragile financial condition typical of a young start-up. The absence of a profit and loss statement limits insight into profitability and cash flow, leaving some symptoms of financial distress unexamined.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	932	Very low; typical for a new micro-entity with few long-term resources.
Current Assets	40,777	Reasonable level of short-term assets (cash, debtors).
Current Liabilities	39,100	High relative to current assets, but slightly covered.
Net Current Assets	1,677	Positive but narrow working capital; potential liquidity risk if obligations increase.
Net Assets (Shareholders’ Funds)	861	Positive but very low equity base; limited financial buffer.
Employees	2	Small workforce consistent with micro-entity status.
Account Category	Micro	Simplified filing and reporting standards apply.
Industry SIC Code	62012 (Business and domestic software development)	Sector typically requiring investment in intangible assets and skilled labour.

Interpretation:
The company’s balance sheet shows it has just enough current assets to meet its short-term liabilities, a sign of “stable but vulnerable” liquidity. The very low net assets suggest limited retained earnings or capital injection beyond the initial share capital. The modest fixed assets are expected for a software development startup, which often invest in intangible assets not captured on the balance sheet. The two-person team aligns with a lean operation.

---

3. Diagnosis

• Liquidity Status ("Vital Signs"): The firm has positive net current assets, indicating it can cover short-term debts, but the margin is thin. This "healthy cash flow" is a positive symptom but remains precarious.
• Capital Adequacy: The very low shareholders' funds signal a delicate financial condition; the company has minimal equity cushion to absorb losses or fund growth. This is akin to a patient with low immunity—vulnerable to external shocks.
• Profitability and Cash Flow: The absence of profit and loss data restricts the ability to diagnose profitability or cash generation. This is a critical missing symptom that would clarify the company’s operational health.
• Growth and Investment: Fixed assets are minimal, which is consistent with the software development sector where intangible assets dominate. The company's investment in staff and development might not yet fully reflect on the balance sheet.
• Risk Factors: As a young company incorporated in late 2022, it is still in an early growth phase. The narrow working capital buffer and small equity base mean the company must carefully manage cash flow to avoid distress.

Overall Diagnosis: HYPERION LIVE LIMITED is currently solvent and operationally sound in terms of meeting its immediate financial obligations. However, its financial "immune system" is weak due to low net assets, and it must guard against cash flow volatility and unforeseen liabilities. The company appears stable but should monitor liquidity closely and seek to build a stronger equity base.

---

4. Recommendations

1. Cash Flow Monitoring: Implement rigorous cash flow forecasting and monitoring to ensure that working capital remains positive and to anticipate any liquidity crunches early.
2. Equity Strengthening: Consider raising additional equity or retained earnings to increase shareholders’ funds, providing a stronger financial cushion.
3. Profit & Loss Transparency: Prepare and review profit and loss statements regularly to diagnose operational profitability and identify cost control or revenue enhancement opportunities.
4. Cost Management: Maintain strict control over current liabilities and operating expenses to avoid overstretching the narrow working capital.
5. Growth Investment: Evaluate opportunities for strategic investment in intangible assets (software development, IP) and human capital to drive future profitability.
6. Stakeholder Communication: Keep directors and shareholders regularly informed about financial health to enable timely decisions and interventions if needed.

---