Company Number: SC722666

Analysis Date: 2025-07-29 18:12 UTC

Financial Health Assessment of HAB PROPERTIES LTD

---

1. Financial Health Score: D

Explanation:
HAB Properties Ltd exhibits clear signs of financial distress. The company has persistent negative net current assets (working capital) over the last three years, indicating liquidity issues, and negative shareholders’ funds (equity), which suggests solvency concerns. The company's liabilities exceed its assets, reflecting an unhealthy balance sheet status. While the company remains active and compliant with filing deadlines, the financial "vital signs" point to significant underlying health challenges.

---

2. Key Vital Signs

Metric	2025 (£)	Interpretation
Fixed Assets	444,833	Stable investment in long-term assets.
Current Assets	26,434	Very low liquid assets available.
Current Liabilities	491,259	High short-term debts due within one year.
Net Current Assets	-464,825	Severe working capital deficit ("cash flow crisis").
Total Assets Less Current Liabilities	-19,992	Negative net assets indicating insolvency risk.
Shareholders’ Funds	-19,992	Negative equity, implying accumulated losses.
Average Employees	Nil	No employment costs but also no operational personnel.

Interpretation:

• The company’s "vital signs" resemble a patient with a dangerously low pulse: liquidity is critically low, indicating that the company may struggle to meet its short-term obligations without additional financing or asset sales.
• Negative shareholders’ funds indicate the business is technically insolvent, meaning liabilities outweigh assets. This is a key symptom of financial distress.
• Fixed assets remain stable, suggesting the company holds valuable property or investments, but current liabilities overshadow these assets.
• No employees indicate the company operates with minimal overhead, possibly as a holding or asset management entity.

---

3. Diagnosis

HAB PROPERTIES LTD appears to be suffering from chronic liquidity and solvency issues. Despite stable fixed assets (likely real estate investments given SIC code 68100), heavy current liabilities create a "symptom" of financial strain. The negative working capital and shareholders’ deficit suggest the company is reliant on external funding or shareholder support to continue operating. The absence of employees and minimal current assets imply limited operational activity.

This financial profile is typical for a property company with significant debt financing against assets. However, the current liabilities exceed both liquid and fixed assets, which is a warning sign of potential distress if asset values decline or financing options tighten.

---

4. Recommendations

1. Improve Liquidity Position:

   • Explore restructuring current liabilities to extend payment terms or convert some debt into long-term financing.
   • Consider asset sales or refinancing options to raise cash and reduce short-term debt pressure.

2. Strengthen Equity Base:

   • Infuse additional capital from shareholders or external investors to restore positive net assets and improve solvency.
   • Review dividend or distribution policies to retain earnings within the business.

3. Operational Review:

   • Given no employees and limited current assets, confirm the company’s business model and whether current operations align with financial strategy.
   • If the company is primarily a holding entity, ensure asset valuations are accurate and up to date to reflect true financial health.

4. Risk Management:

   • Monitor market conditions affecting property valuations closely, as declines could exacerbate insolvency risk.
   • Maintain transparent communication with creditors and stakeholders to manage expectations and negotiate terms proactively.

---

Summary of Financial Health

HAB PROPERTIES LTD is currently in a precarious financial condition characterized by negative working capital and equity deficits, indicating liquidity and solvency challenges. While the company's fixed assets suggest valuable holdings, the burden of high current liabilities creates symptoms of financial distress that require urgent management attention to avoid further deterioration.