Company Number: 12713816

Analysis Date: 2025-07-29 16:40 UTC

1. Credit Opinion: DECLINE. HAPPY EARTH SOIL LTD shows persistent net liabilities and negative shareholders' funds over the last several years, indicating weak financial health. The company’s current liabilities exceed current assets, although the latest year shows a marginal improvement in net current assets. However, the company is still deeply insolvent on a balance sheet basis with net liabilities near £13,000 and no employees or apparent operating activity. Lack of profitability data and absence of cash reserves further weaken the credit profile. These factors suggest an inability to service debt or absorb financial shocks, posing a high credit risk.

2. Financial Strength: The balance sheet reveals significant weakness. Fixed assets are minimal (£1,840 in 2024), and current assets have declined sharply from £17,096 in 2021 to £5,606 in 2024. Current liabilities remain constant at £15,075, leading to ongoing net current liabilities, though the latest year shows a slight positive £244 net current asset position due to a reduction in short-term creditors. Long-term liabilities of £15,075 create a substantial burden. Negative net assets of approximately £13,000 demonstrate an eroded equity base and insolvency on a going concern basis. The company has no reported employees or operational scale, limiting asset backing or diversification.

3. Cash Flow Assessment: Cash balances are minimal or not separately reported in the latest year, suggesting tight liquidity. Current liabilities significantly exceed current assets historically, indicating working capital deficits and potential liquidity strain. The company’s ability to convert assets into cash quickly appears limited, and absence of employees or turnover data indicates minimal operating cash inflow. No audit or profit and loss information is provided, so cash generation capacity is unclear but likely inadequate to cover liabilities or new credit.

4. Monitoring Points:

• Track changes in net current assets and liquidity position to detect any improvement.
• Monitor any new filings for profitability or cash flow data to assess operational viability.
• Watch for changes in long-term creditor arrangements or restructuring efforts.
• Verify any changes in ownership or control that might impact management quality or financial support.
• Review annual filings promptly for signs of financial deterioration or insolvency procedures.