HAMPSON PROPERTY DEVELOPMENTS LTD
Executive Summary
Hampson Property Developments Ltd is currently dormant with minimal financial activity, reflected by a very low asset base and no revenue generation. The company’s financial health is fragile (Grade D) and requires activation of business operations and financial planning to move toward sustainable growth. Without initiating trading, the company will remain stagnant with limited prospects.
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This analysis is opinion only and should not be interpreted as financial advice.
HAMPSON PROPERTY DEVELOPMENTS LTD - Analysis Report
Financial Health Assessment for Hampson Property Developments Ltd
1. Financial Health Score: Grade D
Explanation:
The company’s financial health is currently very fragile, reflected by minimal asset levels and no trading activity. Being classified as a dormant company means it has no significant revenue or expenses, hence no operational cash flow or profitability. The balance sheet shows only £6 in assets and equity, which is effectively negligible for any meaningful business activity, indicating a very low financial vitality.
2. Key Vital Signs
- Dormant Status: The company has filed dormant accounts consistently since incorporation in 2021. Dormant means no significant transactions occurred, akin to a patient in stasis with no active symptoms.
- Net Assets: £6 across four years consistently, indicating no business growth or capital investment.
- Current Assets: £6 in cash or equivalent, no inventory, receivables, or other assets.
- Net Current Assets: £6, showing minimal working capital, essentially just the nominal cash balance.
- Shareholders’ Funds: £6, matching net assets, reflecting no retained earnings or accumulated profits.
- Employee Count: 3 employees including directors, which is unusual for a dormant company and may indicate preparatory staffing costs or administrative overhead.
- No Overdue Filings: Compliance with filing deadlines is good, showing responsible administration.
3. Diagnosis
Underlying Condition:
The company is in a state of financial dormancy — a "coma" phase for the business. It has no operational income, expenses, or active trading, which means there is no financial "pulse" or "metabolism" to assess. The minimal balance sheet reflects only the initial nominal capital, with no movement or growth. This is typical for a newly formed entity that has not yet commenced trading or is being held inactive.
Symptoms of Distress:
- Lack of revenue generation or assets accumulation.
- No evidence of financial activity or investment.
- Directors have changed recently, which could indicate preparatory changes for future activity or restructuring.
- Despite having 3 employees, financials show no payroll or operating expenses, suggesting these roles are likely directors or inactive.
4. Prognosis
If the company remains dormant, its financial health will remain at a baseline minimal level, with negligible financial risk but also no growth potential. This status is sustainable short-term but not viable as a business strategy long-term.
For the company to develop "healthy circulation," it must begin operations, generate revenue, and increase assets and equity. Without active trading or investment, the company risks stagnation or eventual dissolution.
5. Recommendations
- Activate Trading Operations: Consider initiating development projects or other activities aligned with the SIC code (building project development) to generate cash flow.
- Financial Planning: Develop a clear business plan with capital requirements and projected revenues to move out of dormant status.
- Monitor Cash Flow: Once active, keep a close eye on working capital and cash flow to avoid liquidity distress.
- Cost Management: Review employee roles and costs to ensure they align with business activity and do not drain limited resources.
- Governance Review: With recent director changes, ensure strong governance and oversight to support future growth.
- Compliance Continuation: Maintain timely filings to avoid penalties and maintain good standing.
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