HALDON PRECISION SYSTEMS LTD

Executive Summary

Haldon Precision Systems Ltd is a micro-entity in its first financial year with a clean balance sheet, positive net current assets, and no debt, indicating sound short-term liquidity and solvency. While limited operational history constrains full credit assessment, the company currently demonstrates a low-risk profile for small credit facilities under prudent exposure limits. Ongoing monitoring of financial growth and cash flow stability is recommended as the business matures.

HALDON PRECISION SYSTEMS LTD - Analysis Report

Company Number: 15076266

Analysis Date: 2025-07-20 14:58 UTC

1. Credit Opinion: APPROVE
   Haldon Precision Systems Ltd is a newly incorporated private limited company (since August 2023) operating in the niche of retail and manufacture of sports goods. The company is currently micro-entity sized, with minimal liabilities and positive net assets. The financials indicate a clean balance sheet with net current assets of £5,907 and no long-term debt. Given the early stage of the company and limited financial history, credit exposure should be modest. However, the absence of long-term liabilities and positive working capital support repayment capacity for small credit lines. The director is also the sole significant controller, suggesting clear management accountability.

2. Financial Strength:
   The company’s balance sheet as at 31 August 2024 shows no fixed assets, current assets of £6,396 (likely cash or receivables), and current liabilities of only £489, resulting in net current assets of £5,907. Shareholders funds equal the net assets at £5,907. The absence of debt and positive equity position implies a solvent and financially stable entity at this stage. However, as a micro-entity with only one employee and minimal asset base, the company’s financial depth is limited.

3. Cash Flow Assessment:
   Current assets sufficiently cover current liabilities, indicating adequate short-term liquidity to meet obligations as they fall due. The positive net working capital (£5,907) suggests the business has a buffer to manage cash flow fluctuations. However, with no fixed assets and limited operational scale, cash flows may be closely tied to business cycles and sales performance, which should be monitored.

4. Monitoring Points:

• Business growth trajectory: Monitor turnover and profitability as the company develops beyond its first financial year to assess sustainability.
• Working capital management: Track changes in current assets and liabilities to ensure liquidity remains adequate with business expansion.
• Director’s financial stewardship: Given sole control by one director, consistent filing and prudent financial management are critical.
• Industry risks: The sports goods retail and manufacturing sector can be seasonal and competitive; monitor market conditions and inventory levels if disclosed in future accounts.