HARDIV TEJ PROPERTIES LTD

Executive Summary

HARDIV TEJ PROPERTIES LTD, a recently incorporated micro-entity engaged in real estate activities, currently exhibits negative net assets and a significant working capital deficit, reflecting weak liquidity and financial distress. Given the lack of operating history and poor balance sheet metrics, credit facilities are not recommended at this stage without substantial improvements in financial position and cash flow. Close monitoring of future financial performance and capital structure changes is advised.

HARDIV TEJ PROPERTIES LTD - Analysis Report

Company Number: 15413672

Analysis Date: 2025-07-29 19:28 UTC

1. Credit Opinion: DECLINE
   HARDIV TEJ PROPERTIES LTD shows a negative net asset position of £10,248 at the financial year end (31 January 2025), reflecting liabilities exceeding assets. Current liabilities of £194,206 far surpass current assets of £3,958, resulting in a significant working capital deficit of £190,248. This indicates an inability to meet short-term obligations and poor liquidity. Given the company's recent incorporation (January 2024) and the lack of operating history or profitability data, the business presents a high credit risk and insufficient evidence of repayment capacity.

2. Financial Strength:
   The balance sheet reveals fixed assets valued at £180,000, likely property-related given the SIC codes for real estate activities. However, these assets are heavily leveraged or encumbered, as indicated by the substantial current liabilities. No long-term liabilities are reported, but the large current liabilities suggest either short-term borrowings or trade payables exceeding current assets. Shareholders’ funds are negative, which signals an undercapitalized position and potential solvency concerns.

3. Cash Flow Assessment:
   Current assets are minimal (£3,958), and the working capital deficit is material (-£190,248), indicating poor liquidity and inability to cover immediate debts. The company employs only one person, implying limited ongoing operational activity or scale. No cash flow statements are available to assess operating cash generation, but the negative net current assets and total net liabilities strongly imply cash flow stress.

4. Monitoring Points:

• Monitor future filings for improvements in liquidity and net asset position.
• Track any changes in current liabilities to understand the nature and duration of these debts.
• Observe profitability and cash flow generation in subsequent accounts to evaluate operational viability.
• Review any director or shareholder injections of capital or debt restructuring efforts.
• Watch for any related party transactions or loans that may affect financial stability.