Company Number: 13437060

Analysis Date: 2025-07-29 19:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   HAMI London Limited is an active private limited company engaged in property investment. The company has shown improved profitability with retained earnings increasing significantly in the latest year. However, the balance sheet reveals a working capital deficit, with current liabilities exceeding current assets by £265k. The company relies heavily on a related party loan from its parent, Circle Property Limited, which accounts for £257k of short-term liabilities. Conditional approval is recommended with the condition that the bank obtains clear assurance on the ongoing support from the parent company and monitors the liquidity position closely.

2. Financial Strength:
   The company’s fixed assets comprise investment property valued at £314k, unchanged from the prior year. Shareholders’ funds have increased from £17k to £49k, reflecting accumulated profits of nearly £32k in the year. Despite this, the significant negative net current assets position indicates a liquidity strain. The company carries no audit exemption risks and complies with filing deadlines, showing good governance. The capital structure is minimal with just £100 in share capital, highlighting a thin equity base relative to liabilities.

3. Cash Flow Assessment:
   The current liabilities of £265k are primarily owed to the parent company as a short-term loan, which suggests external cash resources are limited. There are no reported current assets such as cash or receivables, indicating potential liquidity pressure. The absence of employees and operating cash inflows may mean the company depends on capital injections or intercompany funding to meet short-term obligations. This working capital deficit poses a risk for meeting immediate creditor demands without parent support.

4. Monitoring Points:

• Monitor the repayment terms and renewal of the intercompany loan with Circle Property Limited.
• Track changes in working capital, especially current assets and liabilities, to identify any worsening liquidity.
• Observe future profitability and cash generation from property investments to reduce reliance on related party funding.
• Review director changes and any impact on strategic direction or financial management.
• Ensure timely filing of accounts and confirmation statements to maintain compliance and transparency.