HALLETT PROPERTY SERVICES LIMITED

Executive Summary

Hallett Property Services Limited holds valuable investment properties with growing fixed asset values but faces moderate liquidity and solvency risks due to persistent negative working capital and substantial long-term liabilities. The company’s regulatory compliance is sound, yet limited equity and lack of detailed profitability data warrant further financial scrutiny. Overall, the business appears operationally stable but requires careful monitoring of cash flow and debt management for sustained viability.

HALLETT PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 12769130

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: MEDIUM
   Hallett Property Services Limited demonstrates some financial stability through its investment property assets; however, the company’s recurring negative net current assets and substantial long-term liabilities elevate its solvency and liquidity risk to a moderate level.

2. Key Concerns:

• Negative Net Current Assets: The company has consistently reported negative net current assets in recent years (£-13,650 in 2024), indicating potential liquidity constraints and difficulty in meeting short-term obligations.
• Significant Long-Term Liabilities: Creditors falling due after more than one year total £301,517 as of 2024, which is substantial relative to net assets of £54,215, potentially limiting financial flexibility.
• Limited Equity and Share Capital: Share capital remains nominal at £100 with modest shareholders’ funds, which could constrain the company’s ability to absorb losses or raise additional capital if needed.

3. Positive Indicators:

• Increasing Investment Property Value: Fixed assets (investment properties) increased from £322,529 in 2023 to £385,000 in 2024, reflecting asset appreciation and potential for future income or capital gains.
• No Overdue Filings: The company has complied with filing deadlines for both accounts and confirmation statements, indicating good regulatory compliance.
• Active Status and Clear Governance: The company is active with a current director appointed, and no indications of director disqualifications or governance issues are noted.

4. Due Diligence Notes:

• Cash Flow and Debt Servicing: Investigate the company’s cash flow generation and ability to service both short- and long-term debt, given the negative working capital position and sizeable liabilities.
• Nature and Valuation of Investment Properties: Confirm the valuation methodology and market conditions supporting the fair value increase of investment properties to assess asset quality and realizable value.
• Undisclosed Profit and Loss Account: The company has opted not to file a detailed profit and loss account; obtaining internal or supplementary financial data would clarify operational profitability and sustainability.
• Director Appointment Timing: Review the timing and rationale for the recent director change (new director appointed December 2024, after the 2024 year-end) to understand governance continuity and management stability.