RECRUITING HUB LTD

Executive Summary

Recruiting Hub Ltd demonstrates a recent decline in turnover and a loss in the latest financial year, suggesting emerging operational challenges despite a positive working capital position. The company maintains good compliance with filings and has minimal fixed costs, but the concentration of control and reduced liquidity buffer warrant careful monitoring. Further due diligence is recommended to understand the drivers behind financial performance and governance structure.

RECRUITING HUB LTD - Analysis Report

Company Number: 12677584

Analysis Date: 2025-07-20 15:08 UTC

1. Risk Rating: MEDIUM
   The company shows a recent loss and a significant decline in turnover, which raises concerns about operational sustainability. However, positive net current assets and no overdue filings reduce immediate solvency and compliance risks.

2. Key Concerns:

• Declining Revenue and Profitability: Turnover dropped from £427.7k (FY 2023) to £219.8k (FY 2024), with a loss of £43k in FY 2024 after prior marginal profitability. This trend signals potential operational challenges.
• Single Director and Secretary: Both roles held by the same individual, Mr. Madhan Vubra, which could concentrate control and increase governance risk.
• Limited Financial Cushion: Although net current assets remain positive (£15.6k), the reduction from £19.7k the prior year constrains liquidity flexibility, especially in the context of losses.

3. Positive Indicators:

• Positive Net Current Assets: Adequate working capital position with current assets exceeding current liabilities by £15.6k at FY 2024 year-end.
• Timely Compliance: No overdue accounts or confirmation statement filings, indicating good regulatory compliance and governance discipline.
• Micro Entity Status: Small scale with low fixed assets and minimal staff costs (one employee), which may allow agile cost management.

4. Due Diligence Notes:

• Investigate Causes of Revenue Decline and Loss: Understand whether the drop in turnover and the loss are due to market conditions, client loss, or internal issues.
• Assess Cash Flow and Credit Terms: Review cash flow statements and creditor aging to verify liquidity beyond balance sheet snapshots.
• Review Director’s Role and Control: Evaluate governance structure risks given sole director and secretary status, and confirm absence of related-party transactions or conflicts.
• Examine Future Business Plans: Obtain management forecasts or strategic plans to assess sustainability and potential recovery.