SS HARDWARE LIMITED

Executive Summary

SS HARDWARE LIMITED exhibits good financial health for a micro retail business, with strong improvements in liquidity and equity over the past year. The company shows resilience through effective management of short-term liabilities and stable assets. To sustain and enhance financial wellness, focus should be on maintaining cash flow strength, building reserves, and cautiously pursuing growth opportunities.

SS HARDWARE LIMITED - Analysis Report

Company Number: SC741797

Analysis Date: 2025-07-20 17:06 UTC

Financial Health Assessment for SS HARDWARE LIMITED

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1. Financial Health Score: B

Explanation:
SS HARDWARE LIMITED shows a generally stable and improving financial position with positive net assets and working capital growth. The company’s financials reflect a modest but healthy state typical for a micro-entity in the retail sector. While the absolute values are small, the upward trend in net assets and net current assets indicates sound management of resources. The score “B” reflects good financial health but recognizes the small scale and limited asset base which could be vulnerable to external shocks.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	770	855	Small, stable long-term asset base; typical for micro business.
Current Assets	4,054	3,662	Healthy increase in liquid assets (cash, stock, debtors).
Current Liabilities	2,858	3,589	Decreasing short-term debts, reducing financial pressure.
Net Current Assets	1,196	73	Strong improvement in working capital, a key sign of liquidity.
Total Assets less CL	1,966	928	Increasing net assets indicating positive equity build-up.
Shareholders Funds (Equity)	1,966	928	Reflects retained profits, showing growth and resilience.
Number of Employees	2	2	Stable workforce, indicating operational consistency.

Interpretation:

• Healthy Cash Flow Indicator: The net current assets jumped from £73 to £1,196, indicating the company has improved its ability to cover short-term obligations — a vital sign of liquidity and operational health.
• Asset Stability: Fixed assets have slightly decreased but remain stable, typical for a retail stall/market business with low capital expenditure needs.
• Debt Management: Reduction in current liabilities suggests better management of payables or reduction in short-term borrowing.
• Growth in Equity: Shareholders' funds have more than doubled, indicating profitability or capital injection supporting stronger financial footing.

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3. Diagnosis

SS HARDWARE LIMITED presents with symptoms of a financially stable micro-enterprise. The company’s balance sheet reveals a positive trend in liquidity and equity, essential for sustaining day-to-day operations and withstanding minor market fluctuations. The stable employee base and growth in working capital suggest operational efficiency and prudent management of receivables and payables.

However, the small scale of operations and limited asset base mean the company remains sensitive to external risks such as market downturns or supply chain disruptions. The absence of significant fixed assets also implies limited collateral for borrowing, which could constrain expansion or emergency funding options.

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4. Recommendations

• Maintain Strong Liquidity: Continue monitoring cash flow closely to ensure the healthy net current asset position is preserved. Avoid overextending credit to customers or building excessive inventory.
• Build Reserves: Consider retaining more earnings to build a cash reserve buffer that can protect against unexpected expenses or market shocks.
• Explore Growth Opportunities: Given the stable financial footing, cautiously explore opportunities to increase scale—either by expanding product range or market presence—to improve profitability and asset base.
• Risk Management: Implement basic risk controls, including supplier diversification and regular financial reviews, to mitigate vulnerability due to small size.
• Financial Reporting: Continue timely filing of accounts and confirmation statements to maintain regulatory compliance and company reputation.
• Consider Professional Advice: As the business grows, seek advice on tax planning, efficient capital structure, and potential funding sources to support sustainable growth.

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