Company Number: NI669595

Analysis Date: 2025-07-20 18:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   D Hayes Solicitors Ltd is a micro-entity operating in the solicitors sector with a relatively stable balance sheet and no overdue filings. The company has positive net assets and net current assets, indicating a buffer to cover short-term liabilities. However, the company carries a significant long-term creditor balance (£36,000), which is sizeable relative to equity (£1,161), suggesting leverage risk. The absence of audited accounts and limited financial disclosures reduce transparency. Approval is recommended subject to monitoring of cash flow and creditor management to ensure ongoing debt servicing capability.

2. Financial Strength:

• Net assets increased modestly from £560 in 2023 to £1,161 in 2024, showing slight equity growth but remaining low.
• Fixed assets have decreased significantly from £2,120 to £565, indicating possible asset disposals or write-downs.
• Current assets are sufficient (£48,945) to cover current liabilities (£12,777), yielding strong net current assets of £39,494, which is a positive liquidity indicator.
• However, the company has substantial long-term liabilities (£36,000), which is a concern given the low equity base and micro-entity status.
• Share capital is nominal (£100), reflecting a small equity base.

3. Cash Flow Assessment:

• The company’s strong net current assets and current asset level relative to current liabilities indicate good short-term liquidity and working capital position.
• The average staff number is low (2), which suggests low fixed overhead costs.
• There is no direct cash flow statement provided, but the stable current asset level and working capital imply the company can meet immediate obligations.
• The presence of long-term creditors requires scrutiny to ensure repayments are met without liquidity strain.

4. Monitoring Points:

• Monitor the management of long-term creditor balances and any refinancing risks.
• Watch for changes in net assets and working capital trends in future filings.
• Keep an eye on cash generation and payment patterns, especially with creditors.
• Verify that the company continues filing statutory accounts and confirmation statements on time to avoid regulatory risk.
• Review any changes in director or control structure that may impact governance or risk profile.