THE HMBE GROUP LTD

Executive Summary

THE HMBE GROUP LTD is currently in a fragile financial state with extremely limited assets, minimal working capital, and very low equity, typical for a newly established micro entity. While the company is not insolvent, its financial health is weak, indicating a need for capital infusion and stronger cash flow management to support sustainable growth and operational stability.

THE HMBE GROUP LTD - Analysis Report

Company Number: SC696038

Analysis Date: 2025-07-29 14:35 UTC

Financial Health Assessment for THE HMBE GROUP LTD

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1. Financial Health Score: D

Explanation:
The company exhibits symptoms of severe financial frailty. With extremely low asset levels, no fixed assets, minimal working capital, and negligible equity, the financial "vital signs" suggest a business barely sustaining itself. While not insolvent, the company’s financial position is precarious, indicating significant distress or early-stage development challenges.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Fixed Assets	0	No long-term investments or property, limiting stability and collateral.
Current Assets	147	Very low liquid assets, indicating limited cash or receivables to cover short-term needs.
Net Current Assets	147	Small positive working capital, but insufficient buffer for unexpected expenses.
Total Net Assets	147	Extremely low equity, reflecting minimal retained earnings or shareholder investment.
Share Capital	1	Nominal paid-in capital, indicating limited initial funding.
Employees	1	Micro entity with minimal staffing, typical for a start-up or solo operation.

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3. Diagnosis: What the Financial Data Reveals

• Financial Vital Signs: The company’s balance sheet reveals a fragile financial state akin to a patient with very low blood pressure—too little financial "circulation" (cash, assets) to support robust operations or growth.
• Absence of Fixed Assets: The lack of fixed assets means the company has no tangible long-term resources to leverage for financing or operational stability.
• Minimal Working Capital: Working capital is positive but tiny, suggesting the company may struggle to meet obligations promptly or invest in expansion.
• Equity and Capital: The negligible shareholders' funds indicate that the business is either very new or has yet to build retained earnings or attract significant investment.
• Operational Stage: Given incorporation in 2021 and the micro entity status with one employee, the business appears to be in an embryonic or pre-growth phase.
• No Audit Required: As a micro entity, the company benefits from relaxed reporting requirements, but this means less scrutiny on financial robustness.

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4. Recommendations: Actions to Improve Financial Wellness

• Increase Capital Injection: Consider raising additional equity or debt financing to strengthen the company's financial "immune system" and provide a buffer against operational shocks.
• Build Cash Reserves: Focus on improving cash flow management to increase current assets and working capital, ensuring the business can cover short-term liabilities comfortably.
• Asset Acquisition: Invest in long-term assets where possible to build a more solid foundation and enhance borrowing capacity.
• Revenue Growth Strategy: Develop a clear plan to grow sales and profitability, which will improve net assets and overall financial health.
• Monitor Financial Metrics Regularly: Keep a close watch on liquidity ratios and working capital to detect early symptoms of financial distress and respond promptly.
• Seek Professional Advice: Engage with financial advisors or accountants to explore grants, tax efficiencies, and funding opportunities tailored for micro entities.

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