THE SHOOTING HUB LIMITED

Executive Summary

THE SHOOTING HUB LIMITED is currently in a vulnerable financial position characterized by liquidity stress and a high debt load relative to assets. While solvent, the company faces symptoms of financial distress requiring immediate attention to cash flow management and debt restructuring. Proactive steps to improve liquidity and strengthen equity will be critical to ensuring a healthier financial future.

THE SHOOTING HUB LIMITED - Analysis Report

Company Number: 13786531

Analysis Date: 2025-07-20 16:39 UTC

Financial Health Assessment Report for THE SHOOTING HUB LIMITED

---

1. Financial Health Score: C

Explanation:
The company shows a modest equity base with net assets of £25,862 as of the latest accounts. While the company is solvent, there is evidence of financial strain, notably a significant amount of long-term liabilities exceeding current assets. The company's liquidity position is weak, with current liabilities substantially higher than current assets, indicating potential cash flow challenges. This places the company in a "fair" but vulnerable financial condition, hence a grade C.

---

2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£30,847	Stable investment in long-term assets; shows some asset base supporting operations.
Current Assets	£32,059	Short-term resources sufficient but decreased from prior year, reflecting some liquidity pressure.
Current Liabilities	£88,734	High short-term obligations, more than twice the current assets, indicating liquidity stress.
Net Current Assets	-£56,675	Negative working capital suggests potential difficulty meeting short-term debts as they fall due.
Long-term Liabilities	£88,734	Significant long-term debt; needs careful servicing to avoid financial distress.
Net Assets (Equity)	£25,862	Positive but low equity base relative to liabilities; limited financial buffer.
Employees	1	Very small operation, micro-entity scale; limited human resource base.

Interpretation:

• The "vital signs" indicate a company with a small operational scale and a tight financial position.
• The negative net current assets signal "symptoms of distress," akin to a patient struggling with shortness of breath—difficulty in meeting immediate obligations.
• The equity level is positive but thin, suggesting limited reserves to absorb shocks or losses.
• The company’s fixed asset base is stable, but the heavy reliance on liabilities, especially short-term, could compromise financial flexibility.

---

3. Diagnosis: Financial Condition Assessment

The financial data reveals THE SHOOTING HUB LIMITED is operating under considerable liquidity pressure. The current liabilities significantly outstrip current assets, indicating a "healthy cash flow" imbalance that could strain day-to-day operations. The company's capital structure shows heavy reliance on debt financing, which raises concerns about sustainability if revenues are inconsistent or if unexpected expenses arise.

The company does not appear insolvent but exhibits early warning signs of financial stress. The micro-entity status and small workforce suggest limited operational scale, which could constrain growth and resilience.

---

4. Prognosis: Future Financial Outlook

If current trends persist without strategic intervention, the company risks deeper liquidity problems that could impact supplier relationships, credit terms, and operational continuity. However, with management oversight focusing on improving cash flow, reducing liabilities, and possibly increasing equity, the company could stabilize and build a more robust financial foundation.

---

5. Recommendations: Actions to Improve Financial Wellness

• Improve Liquidity:

  • Tighten credit control to accelerate receivables collection.
  • Negotiate better payment terms with creditors to ease short-term cash outflows.
  • Consider short-term financing solutions cautiously to cover working capital gaps.

• Reduce Debt Burden:

  • Explore restructuring long-term liabilities to more manageable repayment schedules.
  • Assess options for equity injection or capital raising to strengthen the balance sheet.

• Operational Efficiency:

  • Given the micro size, streamline operations to reduce fixed and variable costs.
  • Explore new revenue streams or markets to increase turnover and cash inflows.

• Financial Monitoring:

  • Implement regular cash flow forecasting and scenario planning to anticipate liquidity issues early.
  • Maintain close oversight of financial metrics akin to regular health check-ups.

---