Company Number: 14640093

Analysis Date: 2025-07-20 15:41 UTC

1. Credit Opinion: DECLINE
   Halo 360 Properties Ltd demonstrates a weak financial position with consistent net liabilities and significant current liabilities exceeding current assets by approximately £87k. The company is in its early stage of operation (incorporated 2023) and has no employees, indicating limited operational scale and revenue-generating capacity. The negative net assets and shareholders' funds suggest insufficient equity backing to absorb losses or support further borrowing. Without evidence of profitability, cash inflows or tangible plans for debt servicing, the risk of default is high. Therefore, extending credit facilities is not advisable at this stage.

2. Financial Strength:
   The balance sheet shows fixed assets valued at £166,473, which remain unchanged between 2024 and 2025, indicating no recent capital investment or asset disposal. Current assets are minimal (£2,208), while current liabilities are substantial at £120,000, leading to a significant negative working capital position (net current liabilities of about £87k). Total liabilities exceed total assets, resulting in net liabilities of £41,522. Shareholders’ funds mirror this deficit, reflecting accumulated losses or undercapitalization. The absence of employees and operating profits limits financial resilience.

3. Cash Flow Assessment:
   Current assets primarily consist of very limited cash or receivables, insufficient to cover near-term obligations. The large current liabilities suggest potential cash flow strain and difficulty meeting short-term debts or operational expenses. Negative working capital and net liabilities indicate poor liquidity and an inability to generate or retain cash internally. Without external capital injection or improved cash inflows, the company faces liquidity risk.

4. Monitoring Points:

• Track changes in current assets and liabilities to assess improvements in liquidity.
• Review any capital injections or equity funding to improve net asset position.
• Monitor operating performance for signs of revenue generation and profitability.
• Watch for timely filing of accounts and confirmation statements as indicators of management discipline.
• Keep an eye on director conduct and any changes in ownership or control that may affect credit risk.