Company Number: 12762600

Analysis Date: 2025-07-29 18:58 UTC

1. Risk Rating: MEDIUM
   Henry Strawson Ltd shows some signs of financial stability but also exhibits liquidity concerns due to a significant reduction in cash and net current assets in the latest financial year, which elevates risk moderately.

2. Key Concerns:

• Sharp Decline in Cash Reserves: Cash decreased from £102,109 in 2023 to £22,686 in 2024, a drop of nearly 78%, which raises questions about cash flow management and operational outflows.
• Reduced Net Current Assets: Net current assets declined substantially from £82,829 in 2023 to £15,422 in 2024, indicating tighter short-term liquidity and potential challenges meeting liabilities if this trend continues.
• Director Loan Account Exposure: The company has an outstanding director loan balance (£1,072 at year-end) following a much larger loan advanced during the year (£64,146 max balance). While interest is paid at an approved rate, reliance on director loans may indicate working capital constraints or funding challenges.

3. Positive Indicators:

• Solvent Position: Despite liquidity reduction, net assets remain positive at £15,422, and current liabilities have decreased from £19,280 to £7,864, signaling some liability management.
• Recent and Compliant Filings: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance.
• Single Director with Full Control: The director, Xxxxxx Xxxxxxxxname shown to subscribers, holds full ownership and control, which can facilitate swift decision-making and consistent strategic direction.

4. Due Diligence Notes:

• Investigate the cause of the significant cash depletion and assess if it stems from operational expenses, investments, or one-off items.
• Review the sustainability of the company’s business model in residents property management given the small scale and cash flow volatility.
• Examine the terms and impact of the director’s loan facility, including repayment plans and any contingent liabilities.
• Confirm that the company’s small exemption filing status accurately reflects its operations and that no audit or financial scrutiny concerns exist.
• Consider requesting internal management accounts or forecasts to assess ongoing liquidity and profitability trends.