Company Number: 12783676

Analysis Date: 2025-07-29 19:15 UTC

1. Credit Opinion: DECLINE
   Hampson Properties Ltd exhibits significant financial distress with persistent net liabilities exceeding £70k and worsening to nearly £89k in the latest year. Current liabilities are disproportionately high (£100k) relative to current assets (~£8k), indicating severe liquidity constraints. The company relies heavily on director loans (£131k), which may not be sustainable as a credit source. The negative working capital position and negative shareholders’ funds raise serious concerns about its ability to meet short-term obligations and honor credit facilities without additional external support. The company’s going concern assertion is based solely on director confidence, which is insufficient for credit approval.

2. Financial Strength:
   The balance sheet shows a tangible fixed asset base of approximately £94k, but this is offset by significant liabilities and negative equity. The company’s net current liabilities stand at over £82k, reflecting poor liquidity management. The long-term creditor balance of £100k is primarily director loans, which are related party financing and may not be readily collectible. Negative retained earnings and shareholders’ funds indicate ongoing losses or capital erosion. The company is small and remains in a precarious financial position without clear evidence of profitability or capital injection to restore financial health.

3. Cash Flow Assessment:
   Cash reserves are minimal (~£7k) compared to current liabilities, demonstrating an acute liquidity risk. The company’s cash flow from operations is not disclosed, but the negative net current assets and dependence on director advances imply cash flow deficits. Poor working capital management and limited cash buffer reduce the company’s ability to absorb shocks or fund operations without further borrowing or capital infusion. The company’s cash flow position is fragile, increasing the risk of default on credit commitments.

4. Monitoring Points:

• Track changes in current liabilities and director loan balances to assess ongoing liquidity risk.
• Monitor any improvements in equity or profitability reflected in future accounts to gauge financial recovery.
• Review operational cash flows and working capital cycles to confirm if liquidity constraints are easing.
• Watch for timely repayments or restructuring of director advances, which currently underpin the company’s funding.