HARMONY HS (JV) LIMITED

Executive Summary

The company currently exhibits a high risk profile driven by significant liquidity shortfalls and minimal equity capital as per its last reported accounts. While it maintains regulatory compliance and an active governance framework, the limited financial disclosure and negative working capital warrant thorough further investigation. Updated financial data and insights into operational cash flow are essential for a more definitive risk assessment.

HARMONY HS (JV) LIMITED - Analysis Report

Company Number: 13500540

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant liquidity stress with current liabilities substantially exceeding current assets by £68,942 as of the last reported period. Additionally, net assets and shareholder funds are minimal (£6,748), indicating a very thin equity buffer. These factors collectively point to a high risk of solvency issues.

2. Key Concerns:

• Negative working capital: Current liabilities are over five times the current assets, signalling potential difficulties meeting short-term obligations.
• Low equity base: Share capital is nominal (£6), and net assets are just £6,748, which may not support sustained operations or absorb losses.
• Limited financial disclosure: Only one set of micro-entity financials is available (year ended July 2022), restricting visibility into recent financial performance or cash flow trends.

3. Positive Indicators:

• Compliant filings: No overdue accounts or confirmation statements, indicating good regulatory compliance to date.
• Active status with multiple directors and a company secretary appointed, suggesting ongoing governance structure.
• Controlled ownership by two named entities with substantial shareholding, which could imply some support or strategic direction.

4. Due Diligence Notes:

• Obtain updated and complete financial statements beyond July 2022 to assess current liquidity and solvency, especially given the company's incorporation in 2021 and limited financial history.
• Investigate cash flow and funding arrangements to understand how the company manages its negative working capital position.
• Review director backgrounds and any related party transactions with the significant controlling entities to assess risks of conflicts or financial support.
• Verify the operational status and progress of the renewable energy assets mentioned as principal activity to evaluate business sustainability.