HARDWICK DEVELOPMENTS WIRRAL LIMITED

Executive Summary

Hardwick Developments Wirral Limited displays weak financial health characterized by a growing deficit in working capital and negative equity, undermining its ability to meet obligations. Liquidity is insufficient, and the company’s micro status with no employees suggests limited operational scale. Credit approval is not recommended without significant financial restructuring or capital support.

HARDWICK DEVELOPMENTS WIRRAL LIMITED - Analysis Report

Company Number: 14070463

Analysis Date: 2025-07-29 15:35 UTC

1. Credit Opinion: DECLINE
   Hardwick Developments Wirral Limited exhibits a weak financial position with persistent negative net assets and net current liabilities growing significantly over two years. The company’s inability to generate net positive working capital or equity suggests limited capacity to meet short-term obligations or service debt. Given the micro-entity scale and lack of employees, the company appears undercapitalized and financially fragile, raising concerns over credit risk and repayment ability.

2. Financial Strength:
   The balance sheet shows fixed assets of £270,532 (up from £138,580 the previous year), but current liabilities have nearly doubled to £295,324, while current assets remain negligible at £3,549. This results in a substantial net current liability position of £-291,775 and negative shareholders’ funds of £-21,243. The company’s equity deficit indicates erosion of capital, with no visible retained earnings or reserves to absorb losses. This weak financial structure undermines solvency and creditor confidence.

3. Cash Flow Assessment:
   Current assets are minimal, indicating poor liquidity and insufficient working capital to cover short-term liabilities. The large current liabilities relative to cash and receivables imply potential cash flow difficulties. There is no indication of positive operating cash flow or external financing support. The absence of employees may reduce overheads but also signals limited internal operational activity generating cash. Overall, liquidity is critically constrained.

4. Monitoring Points:

• Monitor changes in net current assets and shareholders’ funds for signs of financial improvement or further deterioration.
• Track cash flow statements or management accounts if available to assess operational cash generation.
• Watch for any new financing or capital injections from the sole shareholder, Mr Steven Rowe, who controls 75-100% of shares and voting rights.
• Observe filing timeliness and compliance to avoid regulatory or reputational risk.