H4 RAIL LTD

Executive Summary

H4 Rail Ltd is a newly incorporated micro-entity with minimal net assets and negative working capital, relying heavily on director loans to finance its operations. While compliant with filing requirements and actively managed, its current financial position presents significant solvency and liquidity risks. Further investigation into cash flows and business prospects is essential before considering investment.

H4 RAIL LTD - Analysis Report

Company Number: 14817857

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: HIGH
   The company exhibits very weak financial indicators with net current liabilities and minimal net assets. The presence of director loans as a significant debtor amount also raises concerns regarding capital structure and liquidity.

2. Key Concerns:

• Negative net current assets (-£1,691) indicating potential liquidity issues to meet short-term obligations.
• Extremely low net assets (£37), suggesting minimal financial cushion and capital invested in the business.
• Dependence on unsecured, interest-free director loan (£36,274) to fund operations, which may not be sustainable or indicative of external financing capability.

3. Positive Indicators:

• Company status is active and filings (accounts and confirmation statements) are up to date with no overdue documents, reflecting regulatory compliance.
• The director and sole significant controller is clearly identified and actively involved, which can aid decision-making and governance.
• The company operates in multiple related sectors (quantity surveying, management consultancy, railway construction) potentially allowing diversified revenue streams over time.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan, including any plans for repayment or conversion to equity.
• Review cash flow statements and future cash flow projections to assess the ability to cover current liabilities and operational expenses.
• Understand the company’s business model, contracts, and pipeline to evaluate operational sustainability given limited capital.
• Confirm no contingent liabilities or off-balance sheet obligations that might further strain finances.
• Monitor for any changes in ownership or director appointments that could impact governance or financial support.