Company Number: 13241351

Analysis Date: 2025-07-20 18:16 UTC

1. Risk Rating: HIGH
   Despite being a micro-entity with limited filing requirements and no employees, Halstead New Homes Ltd presents significant financial distress indicators. The company has consistently reported negative net assets (shareholders' funds) for the past two years, indicating liabilities exceed assets. The balance sheet shows current liabilities exceeding current assets by a substantial margin (£696,885 liabilities vs. £72,411 assets in 2024), suggesting liquidity issues and inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company’s net assets have deteriorated from a positive £483 in 2021 to negative £1,720 in 2024, indicating ongoing losses or write-downs eroding equity.
• Poor Liquidity Position: Current liabilities vastly exceed current assets each year, implying potential cash flow problems and difficulty in meeting immediate debts.
• Lack of Operational Scale and Revenue Visibility: No employees reported and no turnover data disclosed; absence of revenue or profitability information limits assessment of sustainable operations.

3. Positive Indicators:

• Steady Increase in Fixed Assets: The value of fixed assets increased from £482,541 in 2021 to £622,754 in 2024, suggesting investment in property or development assets consistent with its SIC classification (real estate letting and operating).
• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance in administrative matters.
• Experienced Directors: Directors have relevant professional backgrounds in property development and architecture, which aligns with the company’s industry focus.

4. Due Diligence Notes:

• Examine Nature and Valuation of Fixed Assets: Confirm whether fixed assets are encumbered or impaired and assess their market realizable value versus balance sheet figures.
• Review Financial Performance and Cash Flow: Obtain detailed profit and loss statements and cash flow reports to understand operational viability and revenue generation.
• Assess Debt Structure and Creditor Terms: Clarify the composition of current liabilities, creditor relationships, and repayment schedules to evaluate solvency risks.
• Investigate Absence of Employees and Revenue: Understand how the company operates without employees and verify if it outsources operations or is dormant in trading terms despite active status.