Company Number: 13551698

Analysis Date: 2025-07-20 17:29 UTC

Financial Health Assessment for I-HAV LTD (as at 31 March 2024)

---

1. Financial Health Score: B+

Explanation:
I-HAV LTD demonstrates a generally healthy financial condition for a young private limited company, with solid working capital and positive net assets growth year-on-year. The company maintains a healthy cash reserve and manageable liabilities, but the presence of hire purchase contracts (long-term debt) and provisions suggests some financial commitments that require ongoing monitoring. The absence of audit indicates the company is small and likely complies with exemption criteria, but this limits the depth of assurance on the figures.

---

2. Key Vital Signs

Metric	Value (2024)	Interpretation
Current Assets	£135,329	Adequate short-term resources to cover liabilities
Current Liabilities	£78,793	Short-term debts and obligations
Net Current Assets (Working Capital)	£56,536	Positive and growing working capital, "healthy cash flow" indicator
Net Assets / Shareholders’ Funds	£58,422	Positive equity, reflecting accumulated retained earnings
Cash at Bank	£58,496	Reasonable liquidity cushion for operations
Debtors	£66,833	Receivables are significant; effective credit control needed
Hire Purchase Contracts (Long-Term Debt)	£22,412	Long-term liability, manageable but a "symptom" to watch
Provisions for Liabilities	£5,699	Future obligations reserved for, prudent financial management
Turnover / Profit Data	Not disclosed	Unable to assess profitability or revenue growth directly

---

3. Diagnosis: Financial Condition Overview

• Liquidity and Working Capital:
  The company has a positive and improving working capital position, increasing from £26,351 in 2021 to £56,536 in 2024. This indicates the company can comfortably meet its short-term obligations—a "healthy pulse" for operational stability.

• Solvency and Capital Structure:
  Net assets grew from £29,051 in 2021 to £58,422 in 2024, showing retained earnings accumulation and strengthening of shareholders' funds. The presence of hire purchase contracts introduces moderate leverage, which is typical for asset acquisition but requires careful cash flow management to avoid "symptoms of financial strain."

• Asset Management:
  Fixed assets increased significantly with acquisitions (£38,786 additions), reflecting investment in plant and machinery. This suggests growth and reinvestment in the business but also means depreciation expense and financing costs will impact future profitability.

• Receivables Management:
  Debtors increased notably, from £16,613 in 2021 to £66,833 in 2024, indicating either strong sales growth on credit or potential delays in collections. This could be a "symptom" of slower cash inflows if not managed properly, potentially impacting liquidity.

• Profitability and Revenue:
  The absence of income statement data limits assessment of profitability and operational efficiency. However, the accumulation of retained earnings suggests the company is profitable or at least not incurring losses that erode equity.

• Compliance and Governance:
  The company is active, filing accounts and confirmation statements on time, indicating good compliance with statutory obligations. Directors hold significant control and are resident locally, which may enhance governance oversight.

---

4. Recommendations: Actions to Improve Financial Wellness

1. Monitor and Manage Debtors Effectively:
   Implement or enhance credit control procedures to ensure timely collection of receivables, reducing the risk of cash flow "blockages."

2. Manage Hire Purchase Debt Prudently:
   Maintain robust cash flow forecasts to meet hire purchase obligations without straining liquidity, ensuring these "financial commitments" do not become distress symptoms.

3. Profitability Analysis:
   Obtain and review full profit and loss accounts regularly to assess margins and operational efficiency, helping to diagnose any underlying issues early.

4. Cash Flow Planning:
   Maintain a healthy cash buffer and monitor working capital closely, especially as fixed asset investments increase, to avoid liquidity crunches.

5. Strategic Growth Planning:
   Leverage the growing asset base and working capital to pursue sustainable growth opportunities while maintaining financial stability.

---