HAGUE TELECOM SERVICES LTD
Company number 06843736 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Analysis: HAGUE TELECOM SERVICES LTD (06843736)
1. Risk Rating: HIGH
Justification: The company's status is recorded as "Liquidation" at Companies House, indicating formal winding-up proceedings are underway or imminent. This is the paramount risk factor that supersedes all other considerations. Additionally, the 2024 accounts reveal a £657,233 connected party loan write-off and extensive related-party dependencies that raise serious governance concerns.
2. Key Concerns
Concern 1: Liquidation Status
The company's registered status is "Liquidation," which signals that the business is undergoing formal closure. This fundamentally changes the nature of any investment assessment – the question shifts from operational viability to realisation of remaining asset value and creditor priority. The contradiction between the "Liquidation" status and the in_liquidation flag showing "False" requires immediate clarification; the Companies House status should take precedence.
Concern 2: £657,233 Connected Party Loan Write-Off The 2024 accounts disclose a loan to a connected party written off amounting to £657,233. This is a material sum relative to the company's net assets of £1,217,855. Such a write-off raises questions about: - The original purpose and terms of the loan - Due diligence performed before extending the loan - Whether this represents a transfer of value out of the company - Whether the write-off benefits connected parties at the expense of other stakeholders
Concern 3: Extensive Related Party Transactions and Intercompany Dependencies The accounts reveal significant entanglement with group entities: - Purchases from related parties: £1,258,140 (FY2024) - Amounts owed by group undertakings: £833,700 (up from £351,864) - Amounts owed to group undertakings: £381,707 (new in FY2024) - Company property pledged as security for a loan to HPS Plant Hire Limited (a group company)
The company appears to operate as part of a group structure with substantial financial interdependencies, creating contagion risk if any group entity experiences distress.
3. Positive Indicators
Net Asset Position: The company reports net assets of £1,217,855 (up from £847,006 in FY2023), suggesting a positive book value. However, the quality of these net assets is questionable given the composition.
Tangible Asset Base: The company holds £701,952 in tangible assets, including £509,695 in land and buildings. These may have realisable value in a liquidation scenario, though valuations should be independently verified.
Filing Compliance: Accounts are filed and not overdue. The company has maintained its filing obligations, which provides some confidence in the reliability of the information available.
Employee Continuity: Average employee numbers increased from 21 to 24, suggesting operational activity continued through the period.
4. Due Diligence Notes
| Item | Investigation Required |
|---|---|
| Liquidation Status | Obtain the liquidation notice from the Gazette or Companies House. Determine the type of liquidation (voluntary vs. compulsory), the appointed liquidator, and the date proceedings commenced. |
| Connected Party Loan Write-Off | Request full details of the £657,233 write-off: who the loan was extended to, when it was made, what security was held, and why it was determined to be irrecoverable. Assess whether this transaction was at fair value. |
| Intercompany Balances | The £833,700 owed by group undertakings represents 69% of total debtors. Assess recoverability of this balance, particularly if group entities are also under financial strain. |
| Property Security | The company has pledged property as security for a loan to HPS Plant Hire Limited. Determine the value of this guarantee and the financial condition of HPS Plant Hire. |
| Director Loan | £76,104 is outstanding from a director. While advances and repayments are occurring, this represents a material sum and should be assessed for compliance with the Companies Act 2006 (particularly section 197-214). |
| Cash Trajectory | Cash has declined from £956,631 (FY2023) to £186,586 (FY2024). While some of this may reflect the change in accounting period (prior year was 18 months), the trajectory warrants investigation. |
| Comparative Figures | The accounts note that FY2023 covered an 18-month period to align with the parent company year-end, making direct comparison with FY2024 (12 months) unreliable. Request management accounts for like-for-like assessment. |
| Parent Company Structure | Given the extensive group transactions, map the full group structure and assess the financial health of key group entities, particularly HPS Plant Hire Limited. |
| Provisions Reduction | Provisions decreased from £58,143 to £11,143. Understand what these provisions related to and whether the release is appropriate. |
| Name Change | The company changed its name from TELEC UTILITIES LTD in 2022. Understand the commercial rationale and whether this coincided with any structural changes. |