H20 PROPERTY SERVICES LIMITED

Executive Summary

H20 PROPERTY SERVICES LIMITED exhibits a modest positive net asset position but faces significant liquidity and leverage concerns due to high long-term and current liabilities relative to assets. The company is compliant with filing requirements but operates at a micro scale with no employees, indicating limited operational depth. Further scrutiny of its liabilities and cash flow dynamics is warranted to fully assess financial stability.

H20 PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 12769529

Analysis Date: 2025-07-29 20:08 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position as of the latest accounts, but the high level of long-term creditors relative to net assets and current assets raises some concern about solvency and liquidity risks.

2. Key Concerns:

• High Long-Term Liabilities: The company has £245,510 in creditors due after more than one year, nearly matching total assets less current liabilities (£249,587). This leverage could strain financial flexibility if cash flow deteriorates.
• Weak Liquidity Position: Current assets (£4,498) are significantly lower than current liabilities (£108,462), resulting in net current liabilities of about £103,964 in 2024, indicating potential short-term liquidity pressure.
• No Employees and Micro-Entity Status: The absence of employees and micro-entity classification suggests a small-scale operation that may have limited operational resilience or growth capacity.

3. Positive Indicators:

• Positive Net Asset Value: Net assets improved to £4,077 in 2024 from a negative £2,694 in 2023, indicating some recovery or improvement in financial position.
• Consistent Fixed Assets: Fixed assets remain stable at £353,551, suggesting some underlying asset base that could provide collateral or value in the business.
• Timely Filing Compliance: The company’s accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and terms of the £245,510 long-term liabilities: interest rates, repayment schedules, and covenants.
• Examine cash flow statements or management accounts to assess operational cash generation and ability to service short-term liabilities.
• Clarify the business model, revenue streams, and sustainability given zero employees and micro-entity status.
• Assess directors’ plans for improving liquidity and solvency given current balance sheet constraints.
• Confirm no related party or contingent liabilities that may not be disclosed in micro-entity accounts.