Company Number: 12793135

Analysis Date: 2025-07-29 16:09 UTC

1. Risk Rating: HIGH
   Barhill Enterprises Ltd demonstrates significant solvency and liquidity concerns, evidenced by persistent net liabilities and negative working capital over multiple years. The company has a negative equity position that has worsened recently, indicating financial distress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities have increased from -£4,000 in 2020 to -£7,426 in 2024, signaling ongoing losses and erosion of equity.
• Consistent Working Capital Deficit: Net current liabilities remain negative, though improved slightly in the latest year (-£3,767), indicating liquidity constraints and potential difficulty meeting short-term obligations.
• Increasing Accruals and Deferred Income: A substantial rise in accruals/deferred income from -£613 in 2023 to -£5,851 in 2024 may indicate deferred revenue recognition or potential cash flow timing issues.

3. Positive Indicators:

• Improvement in Net Current Assets in Latest Year: The net current liabilities improved significantly from -£15,160 in 2023 to -£3,767 in 2024, which may suggest some operational or financial adjustments have been made.
• No Overdue Filings: The company is current with all statutory filing requirements, indicating compliance with regulatory obligations.
• Low Fixed Assets Base: Limited investment in fixed assets may reduce capital expenditure burdens going forward.

4. Due Diligence Notes:

• Investigate the nature and sustainability of the company’s revenue streams given the SIC codes indicate real estate management and hotel accommodation activities, which can be capital intensive and sensitive to economic cycles.
• Review the reasons behind the increasing accruals and deferred income and assess cash flow management practices to ensure liabilities can be met as they fall due.
• Confirm the director’s capacity and experience given the sole director is noted as a student, which may impact operational stability and strategic decision-making.
• Assess any contingent liabilities or off-balance sheet obligations not visible in the micro-entity accounts that could exacerbate solvency risk.