Company Number: 13248916

Analysis Date: 2025-07-20 12:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Hackett Homes (Nottingham) Ltd is a micro private limited company operating in real estate letting. The company shows recent positive movement in net assets but continues to have significant net current liabilities, indicating liquidity risk. The director, Mrs Catherine Radford, holds full control and has provided substantial personal advances to support the company, suggesting reliance on director funding. Given the company's early stage (incorporated 2021), limited operating history, and current working capital deficit, credit can be extended conditionally with close monitoring and potentially secured lending to mitigate risk.

2. Financial Strength:
   The balance sheet at 31 March 2024 reports fixed assets of £548,959 and current assets of £39,097 against current liabilities of £584,755, resulting in net current liabilities of £545,658. Although total assets less current liabilities is positive at £3,301 (an improvement from prior years’ negative position), the company remains highly leveraged in the short term. Shareholders' funds have improved from a deficit of £1,197 to a marginal positive £3,301, reflecting retained earnings or capital injections. The company relies heavily on director advances (£582,205 outstanding), which are material relative to equity.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by a large margin, indicating potential liquidity and cash flow challenges. The working capital deficit implies the company may struggle to meet short-term obligations without additional financing or cash inflows. The director's advances appear to be the primary source of liquidity, underscoring dependency on related party funding. No audit has been conducted, limiting visibility into cash flow from operations. The average employee number is one, suggesting low overhead but also limited operational scale.

4. Monitoring Points:

• Working capital improvements and reduction in current liabilities, especially reliance on director loans.
• Timely repayment or restructuring of director’s advances.
• Progression in fixed asset utilization and impact on revenue generation.
• Filing of next accounts and confirmation statement on time.
• Any changes in management or ownership affecting control and financial support.
• Cash flow from operations and ability to generate sustainable earnings to reduce dependence on external or related-party funding.