ABODE HANLEY LIMITED

Executive Summary

Abode Hanley Limited is a newly formed real estate company with a current net liability position offset by a strong cash balance, reflecting typical start-up financials. While liquidity is adequate to meet short-term obligations, the company’s weak equity and working capital deficit warrant conditional credit approval with close monitoring of profitability, cash flow, and compliance with filing requirements. Continued financial support from its controlling shareholders appears likely and will be critical for business resilience.

ABODE HANLEY LIMITED - Analysis Report

Company Number: 14192360

Analysis Date: 2025-07-19 11:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Abode Hanley Limited is a newly incorporated private limited company engaged in buying and selling its own real estate. The company shows a significant net liability position (£259k deficit) after its first accounting period, driven primarily by current liabilities exceeding current assets. However, it holds a substantial cash balance (£922k) which supports short-term liquidity. The company is controlled entirely by Abode Manchester Holdings Limited and Mr Ashley James Ladson, suggesting stable ownership and potential access to further financial support if needed. Given the company's very recent establishment (incorporated in 2022) and current financial position, credit approval should be conditional upon monitoring future profitability and improvements in net asset position.

2. Financial Strength:
   The company’s balance sheet shows net liabilities of £259,186, reflecting accumulated losses or initial start-up expenses. Current liabilities (£1.23M) exceed current assets (£971k), resulting in a working capital deficit of approximately £259k. The main liability component is accruals and deferred income (£1.16M), which may represent funding received in advance or short-term obligations. Fixed assets are not noted, indicating the company may not yet hold significant property or equipment despite its real estate activity. The capital structure is minimal, with only £100 in called-up share capital. Overall, the company’s financial strength is weak at present, typical for a start-up phase, with negative equity and a reliance on cash reserves.

3. Cash Flow Assessment:
   The company holds a strong cash position (£922k), which supports liquidity and ability to meet short-term obligations despite a working capital deficit. Debtors are minimal (£48.6k), indicating limited receivables exposure. The large accruals and deferred income balance suggests advance payments or obligations that could impact cash flow timing. No profit and loss data is filed, but the absence of audit exemption and small company filing status limits detailed insight into operational cash generation. Given the cash reserve, the company can service short-term liabilities for now but will require profitable trading or additional funding to improve its net liabilities and sustain operations longer term.

4. Monitoring Points:

• Timely filing of overdue confirmation statements and future annual accounts to ensure compliance and transparency.
• Movement in net assets and working capital, watching for reduction in net liabilities and improvement in equity.
• Changes in cash balances relative to current liabilities to assess liquidity trends.
• Evidence of operational profitability and cash flow generation in subsequent periods.
• Stability and activity of major shareholders and directors for potential financial support or strategic changes.