HANDSET HUB LTD

Executive Summary

HANDSET HUB LTD is a start-up company with no trading history, negative equity, and minimal cash reserves, which currently presents a high credit risk. The company’s weak balance sheet and poor liquidity position do not support credit approval at this stage. Close monitoring of future financial filings and operational progress is essential before reconsidering credit facilities.

HANDSET HUB LTD - Analysis Report

Company Number: 15168733

Analysis Date: 2025-07-20 19:05 UTC

1. Credit Opinion: DECLINE
   HANDSET HUB LTD is a newly incorporated private limited company (incorporated Sept 2023) with only one financial year filed. The accounts show a net liability position of -£13,155 and minimal cash (£1,826) against current liabilities of £20,000. The company has long-term creditors of £20,000, which exceeds its total assets less current liabilities of £6,845, indicating negative net assets. There is no operational profit or revenue information available, and the company has no employees. The single director and majority shareholder is Miss Ilaha Ahmad, with full control. Given the negative equity, limited cash resources, and lack of trading history, the company currently lacks the financial strength and track record to support credit extension without considerable risk.

2. Financial Strength: WEAK
   The balance sheet reveals tangible fixed assets of £5,019 (fixtures & fittings) and cash of only £1,826, versus current liabilities of £20,000. The net current assets are positive by £1,826, but this is minimal. The company’s overall net assets are negative at -£13,155 due to creditors falling due after more than one year (£20,000). Shareholders' funds are negative, reflecting accumulated losses or start-up costs not yet offset by earnings. This weak financial foundation and negative equity indicate poor financial strength and limited buffer to absorb financial shocks or losses.

3. Cash Flow Assessment: POOR
   Cash at bank is low (£1,826) with no indication of incoming cash flows or revenue generation. No employees are recorded, suggesting the company may not yet be fully operational. Working capital is minimal and unlikely to cover short-term obligations comfortably. The presence of long-term creditors without corresponding assets or earnings to service these obligations raises concerns about liquidity and ongoing cash flow. Without proven cash inflows or operating revenue, the company’s ability to meet debt service or supplier payments is doubtful.

4. Monitoring Points:

• Filing of subsequent accounts and confirmation statements to track business progress and financial updates.
• Evidence of revenue generation and profitability in future periods.
• Changes in cash balances and working capital to assess liquidity improvements.
• Status and terms of long-term creditors and any repayments or refinancing activity.
• Director’s management actions to improve financial position or raise additional equity capital.
• Any new appointments or changes in ownership/control impacting credit risk.