HACON INVESTMENTS LIMITED

Executive Summary

Hacon Investments Limited has demonstrated improved financial position with positive net assets and increased liquidity, supported by its investment assets. However, the company remains highly leveraged with significant long-term liabilities relative to equity, warranting conditional credit approval. Close monitoring of asset values, cash flow generation, and debt servicing will be critical in managing credit risk.

HACON INVESTMENTS LIMITED - Analysis Report

Company Number: 12719074

Analysis Date: 2025-07-29 19:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

Hacon Investments Limited is an active private limited company operating in real estate investment and letting. The latest accounts show a positive turnaround from a net liabilities position in prior years to net assets of £132,124 as of 31 March 2024. However, the company carries significant long-term liabilities (£3.02M) relative to its asset base (£3.1M investments). Current liabilities are low (£18k) and cash holdings have improved markedly to £130k, supporting short-term liquidity. Given the nature of the business and the improvements in net asset position and cash, credit may be extended on a conditional basis subject to ongoing monitoring of asset valuations, debt servicing ability, and cash flow. The company’s small employee base (none reported) and directors’ control suggest closely managed operations but limited operational scale.

2. Financial Strength:

The balance sheet shows fixed assets (investments) worth £3.1M with relatively stable valuation gains in the latest year. Shareholders’ funds have improved from negative £142k in 2023 to positive £132k in 2024, indicating recovery. Current assets exceed current liabilities by £112k, providing a modest working capital buffer. Long-term creditors stand at £3.02M, indicating the company is leveraged, although this appears stable. The company has no reported bank overdrafts or short-term borrowing. The positive retained earnings reflect recent profitability or revaluation gains. Overall, financial strength is moderate: the company is asset-backed but with high leverage and a small equity cushion.

3. Cash Flow Assessment:

Cash increased significantly from £26k to £130k in the latest year, providing improved liquidity. Net current assets have increased, and current liabilities are minimal, suggesting the company can meet short-term obligations. No employees and limited operating expenses likely reduce cash burn. However, the large long-term liabilities will require servicing from operational cash flows or refinancing. The absence of detailed profit and loss information limits cash flow certainty. Monitoring actual cash flow from rental income or asset disposals is recommended to ensure sustainability.

4. Monitoring Points:

• Asset valuation trends: Any declines in real estate investment values could impair net assets and leverage.
• Debt servicing capacity: Review interest and principal repayment schedules on the £3.02M liabilities.
• Cash flow generation: Confirmation of consistent rental income or other revenue streams to cover operating costs and debt service.
• Financial reporting: Timely submission of full financial statements including profit and loss to better assess operational performance.
• Director conduct and governance: The directors have been in place since incorporation with no adverse records; maintain oversight.