HARDING & HALL LIMITED

Executive Summary

Harding & Hall Limited exhibits financial distress as evidenced by negative net assets and a working capital deficit in its latest accounts. While regulatory compliance and stable management are positives, the company faces significant solvency and liquidity challenges that warrant further investigation before investment consideration. Continued monitoring of operational performance and management actions is advised.

HARDING & HALL LIMITED - Analysis Report

Company Number: 13143994

Analysis Date: 2025-07-20 16:25 UTC

1. Risk Rating: HIGH
   The company shows a deteriorating financial position with negative net assets and net current liabilities as of the last reported year, indicating solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds have declined from positive £4,420 in 2023 to negative £731 in 2024, signaling erosion of equity and potential insolvency.
• Working Capital Deficit: Net current liabilities of £8,547 suggest the company may struggle to meet short-term obligations without additional financing or asset liquidation.
• Declining Fixed Assets and Current Assets: Fixed assets decreased from £12,619 to £7,816 and current assets dropped significantly, which may reflect asset disposals or poor operational cash flow management.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, reflecting good governance and regulatory compliance.
• Stable Directorship: Both directors have remained in post since incorporation, which may indicate stable management.
• Growing Workforce: The average number of employees increased from 3 to 5, suggesting some operational expansion or investment in human capital.

4. Due Diligence Notes:

• Investigate the reasons behind the significant drop in net assets and current assets between 2023 and 2024, including any extraordinary expenses or impairments.
• Review cash flow statements and bank facilities to assess liquidity position in more detail.
• Examine the business model and market conditions affecting the unlicensed restaurant and café sector to evaluate sustainability.
• Confirm no undisclosed contingent liabilities or related party transactions that may impact financial health.
• Assess directors’ plans or strategies to restore positive equity and improve working capital.