HANALIS LTD

Executive Summary

Hanalis Ltd displays a deteriorated financial position characterized by substantial negative net assets and working capital deficits, undermining its ability to service debt. The company’s liquidity is critically low with minimal current assets to cover liabilities. Without evidence of financial restructuring or improved cash flow, extending credit is not recommended at this stage.

HANALIS LTD - Analysis Report

Company Number: SC683151

Analysis Date: 2025-07-29 19:28 UTC

1. Credit Opinion: DECLINE. Hanalis Ltd shows persistent and significant negative net assets and net current liabilities over the last four years, indicating an ongoing erosion of financial strength and inability to maintain positive working capital. The company’s balance sheet is weak with net liabilities exceeding £6,600 as of 31 December 2023. The micro-entity filing status and limited share capital (£1) suggest minimal equity buffer. Without evidence of profitability or cash flow improvement, the company currently lacks capacity to service new credit facilities.

2. Financial Strength: The company’s fixed assets are minimal (£1,952 in 2023) and have declined since 2020, while current assets have practically vanished (£6 in 2023). Current liabilities remain high (~£8,500 to £9,900), resulting in negative net current assets around £-8,500. The net asset position is deeply negative (£-6,606 in 2023), reflecting accumulated losses or insufficient capital injection. The absence of positive shareholder funds and ongoing negative equity expose the company to solvency risk.

3. Cash Flow Assessment: Current assets primarily represent cash or receivables but have nearly depleted by 2023, severely limiting liquidity. The current liabilities significantly outweigh current assets, indicating potential difficulties in meeting short-term obligations as they fall due. The negative working capital position suggests the company is reliant on external funding or director support to maintain operations. No cash flow statements are available, but the balance sheet signals poor liquidity and working capital management.

4. Monitoring Points:

• Monitor changes in net current assets and net liabilities for signs of improvement.
• Review any new capital injections or director loans that might shore up liquidity.
• Watch for filing of full accounts including profit and loss to assess operational performance.
• Track payment history and any overdue filings or legal actions that could indicate worsening credit risk.
• Evaluate any changes in business model or management strategy that could impact financial recovery.