HAMILTON WEST PROPERTY SERVICES LIMITED

Executive Summary

Hamilton West Property Services Limited shows an improving net asset base alongside significant negative working capital, indicating liquidity risks that require further scrutiny. Its asset growth and compliance record are positive, but reliance on creditor financing suggests a moderate risk level for investors, necessitating closer examination of cash flows and liability terms.

HAMILTON WEST PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 12532014

Analysis Date: 2025-07-29 15:04 UTC

1. Risk Rating: MEDIUM

   The company shows moderate solvency risk due to persistent net current liabilities and reliance on long-term liabilities. While net assets and shareholders' funds have improved, the negative working capital position and significant creditors within one year raise concerns about liquidity and short-term cash flow management.

2. Key Concerns:

   • Negative Net Current Assets: The company has reported net current liabilities of approximately £385k as of 31 March 2024, indicating potential liquidity constraints to meet short-term obligations.
   • High Current Liabilities Relative to Current Assets: Current liabilities exceed current assets by a significant margin, which may signal cash flow stress.
   • Reliance on Long-Term Creditors: Substantial creditors falling due after more than one year (£241k) suggest financing through debt, which could pressure solvency if earnings do not improve.

3. Positive Indicators:

   • Increasing Net Assets and Shareholders’ Funds: Net assets have nearly doubled from £93.5k in 2023 to £174k in 2024, reflecting an improving equity base.
   • Growth in Fixed Assets: Fixed assets have more than doubled since incorporation, from nil in 2020 to over £800k in 2024, indicating investment in long-term resources.
   • Timely Filing and Compliance: The company is active and up to date with both accounts and confirmation statement filings, with no overdue records.

4. Due Diligence Notes:

   • Investigate the composition and terms of current and long-term liabilities to assess refinancing risk and creditor relationships.
   • Review cash flow statements and management accounts (not available here) to understand operational cash generation and liquidity management.
   • Assess the nature and quality of fixed assets to determine their realizable value and contribution to business operations.
   • Confirm whether the company has access to additional financing or backers given the negative working capital position.
   • Review directors’ reports and any additional disclosures for insights on future business plans and risk mitigation.

Executive Summary:
Hamilton West Property Services Limited presents an improving equity position but continues to operate with negative net current assets, raising liquidity concerns. The company's investment in fixed assets and consistent compliance with filing requirements are positive, though its ability to meet short-term obligations warrants further investigation. Overall, the company carries a medium risk profile primarily due to its working capital structure.