HARD DRIVE LIMITED

Executive Summary

Hard Drive Limited is a newly incorporated micro-entity with substantial negative net assets and working capital, indicating weak financial health and limited liquidity. The company is not presently capable of servicing debt or meeting credit terms, leading to a declined credit recommendation. Close monitoring of financial improvements and operational cash flow is essential before reconsidering credit facilities.

HARD DRIVE LIMITED - Analysis Report

Company Number: 14717851

Analysis Date: 2025-07-20 18:25 UTC

1. Credit Opinion:
   DECLINE. Hard Drive Limited demonstrates significant financial distress with negative net assets and working capital. The company’s liabilities far exceed its current assets, indicating poor liquidity and an inability to meet short-term obligations. Given the lack of trading history (incorporated in 2023) and no positive equity build-up, extending credit would pose a high risk.

2. Financial Strength:
   The latest balance sheet (year ended 31 March 2024) shows total fixed assets of only £800 and current assets of £1,188 against current liabilities of £7,862, resulting in net current liabilities of £6,674 and net assets at negative £5,874. Shareholders' funds are negative, reflecting accumulated losses or initial capital deficits. The micro-entity status and single-employee operation suggest a very small scale start-up with limited financial buffer.

3. Cash Flow Assessment:
   With current liabilities exceeding current assets by a large margin, the company likely faces severe liquidity constraints. The negative working capital position indicates an inability to cover short-term debts without additional financing or capital injection. There is no evidence of cash reserves or positive operational cash flows at this early stage, which heightens the risk of payment default.

4. Monitoring Points:

• Improvement in net current assets and positive movement towards positive equity.
• Evidence of revenue generation and profitability in subsequent accounts.
• Timely payment of liabilities and supplier settlements to avoid insolvency risk.
• Capital injections or shareholder loans that strengthen the balance sheet.
• Director’s ability to manage financial risks and operational growth, given sole control.