R HEYES SOCIAL WORK ASSESSMENTS LTD

Executive Summary

R Heyes Social Work Assessments Ltd shows a solid financial footing typical for a newly formed small private company, with positive net assets and healthy liquidity. While the company currently operates on a modest scale with limited fixed assets and a single employee, the financial "vital signs" indicate stability with no distress symptoms. To ensure long-term financial wellness, the company should enhance financial reporting, manage cash flow proactively, and plan for growth while mitigating key person risks.

R HEYES SOCIAL WORK ASSESSMENTS LTD - Analysis Report

Company Number: 14468930

Analysis Date: 2025-07-20 13:21 UTC

Financial Health Assessment: R Heyes Social Work Assessments Ltd

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1. Financial Health Score: B-

Explanation:
R Heyes Social Work Assessments Ltd exhibits a solid foundational financial status for a newly incorporated private limited company (since Nov 2022), with positive net assets and working capital. However, the small scale of operations, minimal fixed assets, and modest current assets indicate an early-stage business with limited financial depth. The absence of turnover and profitability data (due to abridged accounts and no income statement filed) restrains a full-spectrum evaluation. Overall, the company shows "healthy vital signs" but is still in the initial growth phase, warranting careful monitoring.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	695	Very low fixed asset base, typical for a service-based startup; implies low capital intensity.
Current Assets (incl. Cash)	6,640	Cash (£6,557) dominates current assets, indicating good liquidity and "healthy cash flow" potential.
Current Liabilities	4,235	Manageable short-term obligations; working capital positive at £2,405 showing short-term financial stability.
Net Assets	2,968	Positive net assets suggest the company is solvent and has a buffer to absorb shocks.
Share Capital	100	Minimal equity input; reflects founder's initial investment typical for micro or small companies.
Provisions for liabilities	132	Small provision indicates some anticipated costs or liabilities, not yet crystallized.
Employee Count	1	Single employee business; operational risk tied closely to key individual (the director).

Additional Observations:

• The company is classified under SIC code 88990, focusing on social work activities without accommodation, a niche service sector with potentially stable demand but sensitive to public funding and regulatory changes.
• The sole director and 100% shareholder is Ms. Rebecca Jayne Heyes, reflecting concentrated control which simplifies decision-making but increases dependency risk.

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3. Diagnosis

Underlying Financial Health:
The company’s "symptoms" indicate early-stage stability with no signs of distress such as negative working capital or excessive liabilities. Positive net current assets and net assets portray a "healthy financial pulse." The cash-heavy current assets suggest the company maintains liquidity to meet immediate obligations, a critical factor for survival in the formative years.

However, the small scale and limited fixed assets point to a business that has yet to scale operations or generate significant revenue streams. The absence of an income statement limits assessment of profitability or cash flow generation from operations. This "diagnostic gap" means the company should be cautious about growth plans and maintain strict cost control.

Risk Factors:

• Concentration risk due to a single director and employee.
• Potential volatility in turnover and earnings not visible in the abridged accounts.
• Dependence on founder’s ongoing involvement and expertise.

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4. Recommendations

To Strengthen Financial Wellness:

1. Develop Detailed Financial Reporting:
   Upgrade from abridged accounts to full accounts including profit and loss statements to provide transparency on revenue streams, expenses, and net profitability. This will help identify operational "symptoms" early.

2. Build a Cash Flow Forecast:
   Regularly monitor cash inflows and outflows to avoid liquidity crunches. Healthy cash flow management is vital as the company grows.

3. Consider Diversification and Growth Planning:
   Explore expanding service offerings or client base prudently to increase turnover and build asset base beyond minimal fixed assets.

4. Mitigate Key Person Risk:
   Consider recruiting or training additional staff to reduce dependency on the sole director and ensure business continuity.

5. Maintain Strong Working Capital Controls:
   Keep current assets comfortably above current liabilities to ensure the company can meet short-term debts without strain.

6. Plan for Tax and Provisions Management:
   Monitor provisions closely and plan for tax liabilities to avoid unexpected financial burdens.

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