JUST ASK HOME HARDWARE LTD

Executive Summary

JUST ASK HOME HARDWARE LTD is financially stable with strong liquidity and improving net assets, reflecting a healthy operational cash flow. However, its significant long-term liabilities relative to equity suggest cautious monitoring is needed to maintain financial resilience. Focused attention on debt management and asset investment will support sustainable growth and long-term wellness.

JUST ASK HOME HARDWARE LTD - Analysis Report

Company Number: SC689018

Analysis Date: 2025-07-29 21:05 UTC

Financial Health Assessment for JUST ASK HOME HARDWARE LTD

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1. Financial Health Score: B

Explanation:
JUST ASK HOME HARDWARE LTD demonstrates solid financial footing for a micro-entity with stable and improving net assets over recent years. The company’s working capital is strong, and liabilities are well covered by current assets, indicating healthy liquidity. However, modest fixed assets and a relatively small equity base suggest limited capital investment and financial cushion. The score B reflects sound financial health with room for growth and resilience improvement.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£2,240	Low fixed asset base typical of a retail hardware micro business; likely reliant on current assets.
Current Assets	£94,005	Healthy level of short-term assets, mainly cash or stock, supporting day-to-day operations.
Current Liabilities	£11,454	Short-term debts are relatively low compared to current assets, indicating good liquidity.
Net Current Assets (Working Capital)	£82,551	Strong positive working capital, signaling good short-term financial health and operational liquidity.
Long-term Liabilities	£65,642	Significant long-term liabilities relative to net assets, which requires monitoring.
Net Assets (Equity)	£19,149	Positive and growing equity base, indicating retained earnings or capital injection.
Share Capital	£100	Nominal share capital consistent with micro-entity status.
Employee Count	2	Small workforce typical of micro business, manageable cost base.

Interpretation:
The company’s “vital signs” show a business with a healthy cash flow and liquidity position (strong net current assets) but a relatively leveraged balance sheet due to notable long-term liabilities. The increasing net assets over four years demonstrate retained earnings accumulation or capital strengthening, which is positive.

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3. Diagnosis

JUST ASK HOME HARDWARE LTD shows classic “symptoms of a stable micro-business” with a steady increase in net assets from £4,130 in 2021 to £19,149 in 2024, reflecting profitability or capital contributions. The working capital is robust, meaning the company can comfortably meet short-term obligations—a key indicator of good financial health.

However, the liabilities due after more than one year (£65,642) are quite significant relative to the net assets, suggesting some financial gearing or borrowing. This “symptom” warrants attention to ensure debt servicing does not strain future cash flows, especially since fixed assets are minimal, limiting collateral or asset backing.

The absence of overdue filings and stable director appointments points to good governance and compliance hygiene, which supports operational stability.

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4. Recommendations

• Monitor Long-Term Debt: Regularly review the terms and repayment schedule of the long-term liabilities to ensure sustainability and avoid liquidity stress. Consider refinancing options if interest rates or repayment terms become burdensome.
• Increase Fixed Asset Investment: Evaluate opportunities to invest in productivity-enhancing fixed assets or technology to support business growth and operational efficiency.
• Strengthen Equity Base: Explore ways to bolster shareholder funds through retained earnings or capital injection to improve financial resilience and reduce reliance on debt.
• Cash Flow Management: Maintain the current strong working capital position by managing inventory and receivables tightly to preserve liquidity.
• Growth Planning: Consider strategic planning for growth, possibly expanding product lines or services to increase turnover, which can further improve financial robustness.
• Regular Financial Reviews: Conduct periodic financial health checks similar to this diagnostic to detect any early “symptoms” of financial distress and take proactive measures.

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