Company Number: 13541976

Analysis Date: 2025-07-29 18:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   G Hawks Ltd is a micro-entity with modest net assets and low working capital. The company shows continuity and compliance with filings, but the net current assets and net assets have decreased notably from 2023 to 2024, indicating some financial pressure. The absence of long-term debt currently is positive; however, the small scale and limited capital base suggest lending should be cautious and possibly secured or limited in amount. The single director and 100% ownership concentration increase exposure to management risk, but no adverse conduct is noted. Credit can be extended with conditions such as regular financial monitoring and possibly restrictions on facility size until financial stability improves.

2. Financial Strength:
   The company’s net assets are low at £829 as of August 2024, down from £497 the previous year, showing marginal improvement but still very thin equity. Current assets have halved from £33,350 to £18,612, while current liabilities have also decreased from £23,673 to £14,633, maintaining positive net current assets of £3,979, which supports short-term solvency. There is no long-term debt as of 2024 (previously £7,230 in 2023), reducing leverage risk. The small asset base and limited financial buffer reduce the company’s ability to absorb shocks.

3. Cash Flow Assessment:
   Net current assets of £3,979 indicate a positive but tight liquidity position. The reduction in current assets and liabilities suggests the company is managing its short-term obligations but with limited excess cash or liquid assets. With only one employee (the director) and no audit requirement, the company appears very small scale, which can limit cash flow volatility but also growth prospects. Working capital remains positive but needs monitoring to prevent liquidity stress.

4. Monitoring Points:

• Track net current assets regularly to ensure liquidity remains positive.
• Watch for any increase in liabilities or reduction in cash balances.
• Monitor director’s ability to maintain compliance and timely filings.
• Review any changes in ownership or management structure that could impact governance.
• Assess turnover and profitability trends once available to evaluate ongoing viability.