HANKIN DIGITAL LIMITED

Executive Summary

Hankin Digital Limited shows a deteriorating financial position with negative net assets and working capital deficits, raising serious concerns over its ability to meet credit obligations. The company’s minimal operational scale and lack of profitability evidence warrant a credit decline. Close monitoring of future financial improvements and funding sources is essential before reconsidering credit facilities.

HANKIN DIGITAL LIMITED - Analysis Report

Company Number: 13528799

Analysis Date: 2025-07-20 18:37 UTC

1. Credit Opinion: DECLINE
   Hankin Digital Limited currently exhibits weak financial health with persistent net liabilities and negative working capital over the past few years. The company’s net assets have deteriorated from -£169 in 2021 to -£3,091 in 2024, reflecting accumulated losses and insufficient equity. The absence of employees and minimal fixed assets suggest limited operational scale or growth potential. Without evidence of profitability or positive cash flow, the company’s ability to service debt or credit facilities is highly uncertain. Therefore, credit approval is not recommended at this stage.

2. Financial Strength:
   The balance sheet shows consistent net current liabilities (-£3,044 in 2024), meaning current liabilities exceed current assets, indicating liquidity stress. Total net liabilities have increased over time, driven by negative shareholder equity and accrued losses. Fixed assets are negligible (£701), and there are no tangible signs of capital investment or asset backing. The company’s micro-entity status limits detailed disclosures, but available data points to a fragile financial position with no buffer against financial adversity.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by a significant margin, implying working capital deficits and potential challenges in meeting short-term obligations. The company holds minimal cash or equivalents (included in current assets), and with no employees, it likely operates on a very lean basis. However, the ongoing negative net assets suggest the company may rely on director funding or external injections to sustain operations. No direct cash flow statements are provided, but the balance sheet structure signals tight liquidity and cash flow constraints.

4. Monitoring Points:

• Monitor turnaround in net assets and working capital improvement in future filings.
• Track profitability indicators once P&L statements become available.
• Observe any changes in credit terms or new financing arrangements that could affect liquidity risk.
• Review director’s continued financial support or external investment inflows as a lifeline.
• Watch for indications of business scaling or diversification beyond current limited operations.