Company Number: 13056621

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: MEDIUM

Justification: HGIT Coventry Limited shows significant fixed assets and profitable operations in its first financial period. However, the large current liabilities exceeding current assets, coupled with sizeable long-term debt, indicate liquidity and solvency pressures that warrant close monitoring.

2. Key Concerns:

• Negative net current assets of approximately £7 million suggest potential short-term liquidity constraints.
• Substantial non-current liabilities (£11.3 million) relative to net assets (~£945k) could indicate high leverage and refinancing risk, especially as the bank loan was due for repayment mid-2023.
• Limited financial history (only one accounting period available) restricts trend analysis and increases uncertainty about operational stability.

3. Positive Indicators:

• The company generated a strong operating profit (£1.4 million) and net profit after tax (£1.1 million) in the initial 13-month period.
• Significant tangible fixed assets (£18.9 million) primarily in land and buildings provide tangible collateral.
• No overdue filings or compliance issues reported, indicating good regulatory standing.

4. Due Diligence Notes:

• Verify the status and terms of the bank loan maturing July 2023, including any refinancing or restructuring agreements.
• Update financials beyond 2021 to assess recent operational performance and cash flows.
• Assess the nature of current liabilities, specifically trade creditors, and their impact on cash flow.
• Review related party transactions and intercompany loans if the company is part of a larger group (noting the PSC is a holding company).
• Examine director changes and their impact on corporate governance and strategic direction.