ARMITAGE HAGUE ESTATES LTD

Executive Summary

Armitage Hague Estates Ltd has demonstrated a significant improvement in its financial position in the most recent year, reversing prior negative equity and liquidity issues. However, the elimination of fixed assets and absence of employees warrant further investigation to assess the sustainability of operations and financial stability. The company maintains good regulatory compliance, but due diligence on asset changes and cash flow is recommended to confirm ongoing viability.

ARMITAGE HAGUE ESTATES LTD - Analysis Report

Company Number: 13059232

Analysis Date: 2025-07-20 13:31 UTC

1. Risk Rating: MEDIUM
   The company has shown a significant turnaround in its financial position in the latest year, moving from negative net assets and current liabilities far exceeding current assets to a positive net current asset position and positive shareholders’ funds. However, the absence of fixed assets in the latest year and the previously large liabilities indicate potential volatility in financial stability.

2. Key Concerns:

• Historical Negative Equity and Liquidity Strain: From 2020 through 2023, the company exhibited negative shareholders’ funds and substantial current liabilities exceeding current assets by a large margin, suggesting prior solvency and liquidity risks.
• Absence of Fixed Assets in 2024: The latest accounts show zero fixed assets, a significant change from prior years when fixed assets were substantial (£125,858). This raises questions about asset disposals or reclassifications that could impact operational capacity or valuation.
• No Employees Recorded: The company reports no employees during the latest year, which may indicate limited operational activity or reliance on external contractors. This could affect operational sustainability depending on the business model.

3. Positive Indicators:

• Strong Improvement in Working Capital: The latest financial year ended 31 December 2024 shows net current assets of £18,785 compared to a deficit of £140,286 the prior year, reflecting improved liquidity and short-term financial health.
• Timely Filing and Compliance: The company is up to date with accounts and confirmation statement filings, with no overdue submissions, indicating robust regulatory compliance and governance practices.
• Stable Directorship: Four directors with diverse professional backgrounds, including a building surveyor, lecturer, carpenter, and accountant, all residing at the same address, suggesting a closely controlled and stable management team.

4. Due Diligence Notes:

• Investigate the reasons behind the disposal or reduction of fixed assets in 2024, including whether this was a sale, write-off, or reclassification, and its impact on future operations.
• Review detailed cash flow statements and creditor payment terms to confirm the sustainability of the improved liquidity position and ensure no hidden contingent liabilities.
• Assess the company’s business model and operational plans given the absence of employees, including reliance on subcontractors or other arrangements.
• Validate the accuracy of the financial statements given that they are unaudited and prepared under micro-entity provisions, which may limit detail and assurance.
• Confirm the nature and terms of current liabilities to assess any potential risk of insolvency or payment difficulties.