HALIMIC PROPERTY HOLDINGS LIMITED

Executive Summary

HALIMIC PROPERTY HOLDINGS LIMITED maintains a stable fixed asset base but faces liquidity challenges due to high current liabilities exceeding current assets, resulting in negative working capital. While equity has grown modestly, cash flow constraints limit the company's ability to service short-term debt without additional funding support. Conditional credit approval is recommended with close monitoring of liquidity, cash flows, and creditor management.

HALIMIC PROPERTY HOLDINGS LIMITED - Analysis Report

Company Number: 12748535

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

1. Credit Opinion: CONDITIONAL APPROVAL. HALIMIC PROPERTY HOLDINGS LIMITED shows a stable asset base with consistent fixed assets and a slight improvement in net assets over the latest financial year. However, working capital position is negative (net current liabilities around £74,850 in 2024), indicating liquidity pressure and potential difficulty meeting short-term obligations without additional financing or cash inflows. The company is a micro-entity with limited operational scale and a very small workforce (1 employee), which may constrain its ability to generate cash flow. Directors include a banker and a businessman, suggesting some financial oversight capability, but the current liquidity situation necessitates monitoring and possibly securing additional working capital or credit support.

2. Financial Strength: The balance sheet is anchored by fixed assets of £150,000 held consistently over 5 years, likely representing property investments given the SIC code for real estate letting. Shareholders’ funds have increased from £622 in 2020 to £7,770 in 2024, showing modest equity growth but still a low capital base. The company carries significant creditor balances, both current (£87,603) and long-term (£67,380), which considerably exceed current assets (£12,753). This mismatch results in net current liabilities and weak liquidity. The positive net assets reflect the fixed asset base, but overall financial strength is constrained by high short-term payables relative to cash and receivables.

3. Cash Flow Assessment: Current assets are very low relative to current liabilities, resulting in negative net working capital. This indicates potential cash flow constraints in meeting immediate liabilities, which could lead to liquidity risk if operating cash inflows are insufficient. The micro-entity accounts do not provide a cash flow statement, but the balance sheet suggests reliance on long-term creditors or equity injections to fund ongoing operations. The slight increase in current assets in 2024 versus 2023 is a positive sign but remains inadequate to cover current liabilities. Close attention should be paid to debtor collection and creditor payment terms to avoid cash shortfalls.

4. Monitoring Points:

• Liquidity and working capital trends: Monitor quarterly cash flow and current asset levels versus short-term liabilities.
• Debt profile and repayment terms: Review creditor aging and any refinancing arrangements on long-term liabilities.
• Operating performance: Track rental income or other revenue streams to assess ability to generate sufficient cash flow.
• Equity injections or shareholder support: Watch for additional capital contributions or director loans to alleviate liquidity pressures.
• Director conduct and governance: Given the small size, ensure key management remains stable and compliant with reporting deadlines.