BILLY THE HOT TUB GUY LIMITED

Executive Summary

Billy The Hot Tub Guy Limited maintains positive net assets and complies with filing requirements, which supports a baseline level of financial stability. However, the significant reduction in cash reserves coupled with increased hire purchase liabilities introduces liquidity and leverage risks that warrant further investigation. The company’s small scale and single-director structure also highlight potential operational and governance vulnerabilities.

BILLY THE HOT TUB GUY LIMITED - Analysis Report

Company Number: 13043388

Analysis Date: 2025-07-29 20:17 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and shareholders' funds, indicating capital buffer. However, the significant increase in hire purchase liabilities and the sharp reduction in cash reserves over the last year raise concerns about liquidity and financial flexibility.

2. Key Concerns:

• Liquidity Decline: Cash at bank dropped from £48,825 in 2023 to £9,767 in 2024, a notable depletion that could impact the company’s ability to meet short-term obligations.
• Increasing Debt Burden: Total hire purchase liabilities rose from £24,289 (sum of current and non-current) in 2023 to £34,915 in 2024, increasing financial leverage and interest obligations.
• Concentrated Control and Management: Single director ownership (Mr. B J Henry) with no additional management or governance structures reported, which may present operational and governance risks.

3. Positive Indicators:

• Positive Net Assets: Despite the decline from £47,546 in 2023 to £30,552 in 2024, net assets remain positive, suggesting ongoing solvency.
• Consistent Reporting Compliance: Up-to-date filings for accounts and confirmation statements with no overdue filings, indicating regulatory compliance.
• Tangible Fixed Assets Growth: Net book value of fixed assets increased slightly, reflecting investment in operational capacity.

4. Due Diligence Notes:

• Investigate nature and terms of hire purchase contracts to assess covenant risks and repayment schedules.
• Review cash flow statements to understand the cause of cash depletion and assess operational cash generation capacity.
• Confirm debtor collectability, given the jump in debtors from £899 to £15,600 in one year, to ensure receivables are not overstated.
• Assess operational sustainability given single employee reported and limited scale of operations.
• Verify director background and any related party transactions due to concentrated control.