HARPER HUDSON ENGINEERING LTD

Executive Summary

Harper Hudson Engineering Ltd is a newly formed micro private company with negative net assets and working capital, indicating a weak financial position. The company currently lacks the financial strength and liquidity to support credit facilities, posing a high risk of default. Credit approval is not recommended until the company demonstrates improved capitalization and cash flow stability.

HARPER HUDSON ENGINEERING LTD - Analysis Report

Company Number: 14535014

Analysis Date: 2025-07-20 12:54 UTC

1. Credit Opinion: DECLINE
   Harper Hudson Engineering Ltd currently exhibits weak financial health with significant net liabilities (£10,234 negative net assets) and negative working capital (£10,995 net current liabilities). The company is a micro-entity, newly incorporated in late 2022, and its first full accounts show no profitability or equity buffer. The negative net asset position indicates it is currently undercapitalized and unable to comfortably meet short-term obligations from existing assets. Given its early stage and lack of financial strength, the company poses a high credit risk and cannot be recommended for credit approval at this time.

2. Financial Strength:
   The balance sheet reveals minimal fixed assets (£761) and limited current assets (£9,489) against current liabilities nearly double that amount (£20,484). The net liabilities indicate that total liabilities exceed total assets, reflecting an undercapitalized and fragile financial position. Shareholders’ funds are negative, signaling accumulated losses or insufficient capital injection. The company employs only one person (the director), consistent with a micro-entity startup stage but without demonstrated financial resilience.

3. Cash Flow Assessment:
   Current liabilities significantly exceed current assets, creating a negative working capital situation which indicates potential liquidity stress. There is no indication of cash reserves or receivables sufficient to cover short-term debts. Given the micro company status and absence of detailed cash flow statement data, it is likely the company depends heavily on shareholder funding or external financing to sustain operations. Without improved cash flow or capital injection, the company’s ability to service debt or meet payment terms is doubtful.

4. Monitoring Points:

• Watch for improved net assets and positive working capital in future accounts to assess financial recovery.
• Track any capital injections or loans from the sole shareholder, Mr Philip Bradley, which may support liquidity.
• Monitor filing of next accounts and confirmation statements to ensure compliance and transparency.
• Evaluate any operational progress or contracts that could generate revenue to reduce losses.
• Review credit references or supplier payment behavior if credit facilities are granted in future.