SKILLSHUB LIMITED

Executive Summary

Skillshub Limited demonstrates strong financial health with excellent liquidity, growing net assets, and sound working capital, indicating stable and efficient operations. While rising tax liabilities warrant careful management, the company’s overall financial position is robust, supporting a positive outlook for sustained growth.

SKILLSHUB LIMITED - Analysis Report

Company Number: 12533206

Analysis Date: 2025-07-20 12:04 UTC

Certainly, let's conduct a comprehensive financial health assessment for Skillshub Limited, using the available financial data and accounts.

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1. Financial Health Score: A-

Explanation:
Skillshub Limited demonstrates a robust financial position with strong liquidity, healthy net assets growth, and solid working capital. The company’s cash reserves and net current assets indicate good operational cash flow and ability to meet short-term obligations without distress. The minor caveat is the increase in tax-related liabilities, which require ongoing management to avoid strain, hence the slight deduction from a perfect 'A' rating.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Cash at Bank	£628,615	Very healthy cash reserves, indicating strong liquidity.
Current Assets	£791,326	High current assets relative to liabilities, good short-term financial health.
Current Liabilities	£209,422	Manageable liabilities; increased but still well covered by assets.
Net Current Assets	£581,904	Excellent working capital, sign of operational efficiency.
Net Assets / Shareholders’ Funds	£607,208	Substantial growth from £320k last year; strong equity base.
Fixed Assets	£31,239	Moderate investment in intangible and tangible assets; typical for digital services.
Debtors	£162,711	Increased from previous year, manageable but monitor collections.
Tax Liabilities	£125,913 (Current Tax) + £13,689 (Social Security) + £11,651 (VAT)	Increased tax liabilities need careful cash flow planning.

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3. Diagnosis: Financial Health Assessment

• Liquidity and Cash Flow:
  The company exhibits a "healthy cash flow" with significant cash reserves more than triple the current liabilities. This is a positive sign of liquidity, meaning Skillshub can comfortably cover short-term debts without stress.

• Working Capital Position:
  Net current assets nearly doubled year-on-year, showing the company is efficiently managing its short-term assets and liabilities. Working capital is the lifeblood of daily operations, and Skillshub’s position here is strong.

• Asset Base and Equity Growth:
  The net assets more than doubled from around £320,000 to over £600,000, indicating profitable retention of earnings and/or capital injections. This "healthy balance sheet" effect provides a buffer against external shocks.

• Receivables and Creditors:
  Trade debtors increased but remain well controlled relative to turnover, suggesting customers are paying within acceptable terms. Trade creditors decreased, showing possibly better supplier payment management.

• Taxation and Obligations:
  The significant rise in tax liabilities (including VAT and social security) is a "symptom of growth" but also a potential warning sign if not managed properly, as it can impact cash flow if payments are due in lump sums.

• Business Model and Intangibles:
  Investment in intangible assets (software) consistent with a digital learning company. Amortisation reflects ongoing development and maintenance costs.

• Employee Growth:
  Average number of employees increased from 2 to 6, suggesting business expansion, which aligns with rising asset and equity values.

• Governance and Compliance:
  No overdue filings, no liquidation or administration status, and appointed directors with stable tenure indicate reliable corporate governance.

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4. Recommendations: Improving Financial Wellness

• Manage Tax Liabilities Proactively:
  The company should ensure timely tax payments and consider tax planning strategies to avoid cash flow bottlenecks from large tax outflows.

• Maintain Strong Cash Reserves:
  Continue to build cash reserves as a buffer against market uncertainties or unexpected expenses, especially given growth and expanding operations.

• Monitor Debtor Collections:
  Keep tight control on debtor days to maintain cash flow health. Consider incentivising early payments or using credit checks for new customers.

• Review Asset Utilisation:
  Regularly assess whether investments in software and equipment are yielding expected operational benefits and ROI, to avoid capital tied up in underperforming assets.

• Plan for Sustainable Growth:
  As the company expands staff and operations, ensure overheads do not outpace revenue growth, preserving profitability and cash flow.

• Financial Forecasting and Reporting:
  Implement robust forecasting tools to anticipate financial needs and constraints, enabling proactive management rather than reactive measures.

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Medical Analogy Summary

Skillshub Limited shows "strong vital signs" with a healthy cash flow and robust working capital, akin to a patient with a strong heartbeat and stable blood pressure. The "symptoms" of increased tax liabilities and rising debtors suggest areas requiring close monitoring, much like watching early warning signs before they develop into complications. Overall, the financial "diagnosis" is very positive, reflecting a business in good health with a solid prognosis for continued growth if current trends are managed prudently.

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