H0M GLOBAL ARTS LTD

Executive Summary

H0M GLOBAL ARTS LTD, a newly formed micro-entity, currently presents a weak financial profile with negative working capital and minimal assets, indicating a lack of capacity to service credit. Absent trading history and cash flow generation, the company is high risk for credit exposure at this stage. Close monitoring of financial developments and capital inflows is essential before reconsidering credit facilities.

H0M GLOBAL ARTS LTD - Analysis Report

Company Number: 15239618

Analysis Date: 2025-07-20 14:39 UTC

1. Credit Opinion: DECLINE
   H0M GLOBAL ARTS LTD is a newly incorporated micro-entity with limited financial history and minimal current assets (£41) against current liabilities of £1,520, resulting in negative working capital of £1,479. The company's net assets of £4,421 largely represent share capital rather than operational funds. The absence of fixed assets and no reported revenue or profit generation indicates no current capacity to service debt or obligations. Given the early stage, lack of trading history, and negative liquidity position, credit exposure would be high risk without further financial guarantees or evidence of incoming cash flow.

2. Financial Strength:
   The balance sheet shows a fragile financial position with no fixed assets and very low current assets. The company’s net assets are entirely equity-funded, but the negative net current assets position signals insufficient short-term resources to meet liabilities. This suggests limited financial resilience and a high dependency on shareholder funding or external capital injections to sustain operations.

3. Cash Flow Assessment:
   Cash and equivalents are minimal (£41), and the company’s current liabilities exceed current assets by a significant margin. With no employees and no indication of income or cash inflows, liquidity is a critical concern. The company is not generating operational cash flow and would struggle to meet short-term obligations or working capital needs without immediate external funding.

4. Monitoring Points:

• Monitor filing of subsequent accounts and confirmation statements for changes in financial position.
• Track any growth in current assets or reduction of short-term liabilities.
• Watch for evidence of revenue generation, cash flow improvement, or new capital injections.
• Assess director activity and business development plans to gauge management’s ability to improve financial stability.