HAMISON HOMES LTD

Executive Summary

Hamison Homes Ltd exhibits weakening financial strength with eroding net assets and negative working capital, creating liquidity concerns despite directors’ positive outlook on sales growth. The company’s debt levels and reliance on internal financing warrant conditional credit approval with strict monitoring of cash flow and working capital management. Continued operational performance and timely financial reporting will be critical to sustaining creditworthiness.

HAMISON HOMES LTD - Analysis Report

Company Number: 12854008

Analysis Date: 2025-07-29 19:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Hamison Homes Ltd is an active private limited company in the real estate development and management sector. The company shows a declining net asset position from £58,155 in 2023 to £13,478 in 2024, indicating weakening equity. Current liabilities remain high relative to current assets, leading to negative net current assets (£79,244) in 2024, which suggests liquidity pressures. However, the directors affirm the company is experiencing sales growth and profitability, adopting a going concern basis. The company has secured bank loans and lease obligations, indicating access to credit but also ongoing debt servicing requirements. Approval is recommended with conditions focused on close monitoring of cash flows and liquidity.

2. Financial Strength:
   The company’s fixed assets remain stable at approximately £295k, primarily investment properties (£285k). However, current assets have fallen sharply from £552,516 in 2023 to £149,258 in 2024, mostly due to the elimination of substantial stock/work-in-progress (£539,671 in 2023), which is no longer reported. Current liabilities have decreased but remain significant at £228,502, resulting in net current liabilities. The net asset base has eroded significantly, which weakens the equity buffer. The company’s gearing is high given secured bank loans of £200,035 and lease obligations exceeding £4,700, presenting financial risk if cash flow deteriorates.

3. Cash Flow Assessment:
   Cash at bank increased to £149,258 in 2024 from £12,845 in 2023, which is positive. However, the sharp reduction in current assets and persistent current liabilities suggest tight working capital. The removal of stocks implies either completed projects or write-offs, affecting liquidity and potentially future revenue. Directors’ current accounts owed (£56,852) further indicate internal financing reliance. The company’s ability to service short-term obligations depends on continued sales growth and efficient working capital management. Close attention should be paid to cash conversion cycles and creditor payments.

4. Monitoring Points:

• Working capital trends and net current asset position to avoid liquidity crises.
• Debt servicing capacity given bank loans and lease obligations.
• Revenue and profitability trends to confirm directors’ assertion of growth.
• Any changes in stock or work-in-progress levels indicating project pipeline health.
• Directors’ current account balances as an indicator of related party funding reliance.
• Timely filing of future accounts and confirmation statements to maintain compliance.