Company Number: 13245479

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Halton Limited shows stable net assets and positive equity after initial losses, indicating recovery and growth. However, the company carries significant long-term liabilities against fixed assets, and current liabilities remain substantial relative to current assets. The business operates in real estate letting, which generally provides steady income streams, but working capital constraints and limited liquidity suggest some risk. Approval is recommended with conditions requiring regular monitoring of liquidity and covenant compliance.

2. Financial Strength:
   The balance sheet reveals fixed assets of approximately £505k, largely unchanged over recent years, indicating stable investment in property assets. Net assets are positive at £161k as of 2024, up from a negative equity position in 2021, reflecting retained earnings improvement. However, long-term creditors (£435k) significantly reduce net assets, and the company’s shareholder funds remain modest. Overall, the financial strength is moderate, supported by asset backing but constrained by debt levels.

3. Cash Flow Assessment:
   Current assets stand at £92k against current liabilities of £435k, but the accounts show net current assets of about £92k due to creditor classifications, which suggests careful management of short-term obligations. The reduction in current assets compared to prior year (£141k) may indicate tightening liquidity. The company’s working capital position is tight, with potential strain in meeting short-term liabilities without adequate cash inflow. Cash flow monitoring is essential.

4. Monitoring Points:

• Liquidity ratios (current ratio, quick ratio) to ensure continued ability to meet short-term obligations
• Debt servicing capacity given the sizeable creditor balances and interest commitments if any
• Stability of rental income streams from property letting operations
• Any changes in creditor terms or asset valuations that could affect net asset position
• Timely filing of accounts and confirmation statements to maintain regulatory compliance