HAMILTON SQUARE PROPERTIES LIMITED

Executive Summary

Hamilton Square Properties Limited shows improving financial health with positive net assets and working capital, supported by increasing retained earnings and cash balances. The company remains small scale with modest liquidity, necessitating ongoing monitoring of debtor collections and short-term liabilities to safeguard repayment capacity. Conditional credit approval is recommended with regular review focusing on cash flow and operational performance.

HAMILTON SQUARE PROPERTIES LIMITED - Analysis Report

Company Number: 12715654

Analysis Date: 2025-07-29 17:25 UTC

1. Credit Opinion: APPROVE with conditions

Hamilton Square Properties Limited demonstrates a small but improving financial position with positive net assets and working capital. The company is active, with no overdue filings or signs of distress such as administration or liquidation. However, the limited scale of operations (1 employee and low asset base) and relatively modest cash reserves suggest caution. Approval is recommended with conditions requiring regular monitoring of cash flow and receivables collection to ensure ongoing liquidity and debt servicing capability.

2. Financial Strength

The company has shown a positive trajectory in net assets, increasing from a negative £4,004 in 2021 to £6,857 in 2024. Shareholders’ funds grew from £3,530 in 2023 to £6,857 in 2024, reflecting retained earnings accumulation. The balance sheet is simple with no long-term borrowings disclosed, limiting financial risk from leverage. The share capital is minimal (£100), consistent with a micro or small enterprise. Overall, the financial position is stable but limited in scale, with no significant fixed assets reported.

3. Cash Flow Assessment

Current assets increased from £9,159 in 2023 to £14,365 in 2024, driven by higher debtors (£6,534 to £10,135) and cash balances (£2,625 to £4,230). Current liabilities rose moderately from £5,629 to £7,508, leaving positive net current assets (working capital) of £6,857. The cash position remains modest but improved, indicating some liquidity buffer. However, trade debtors represent a substantial portion of current assets, which could expose the company to collection risks impacting cash flow. Effective working capital management and debtor control are essential.

4. Monitoring Points

• Debtor aging and collection efficiency to mitigate cash flow risk.
• Current liabilities trend and any new short-term borrowings.
• Retained earnings growth to sustain capital base.
• Any changes in operational scale or industry risks in real estate management.
• Continued timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Director conduct and any changes in management that may affect governance.