HARRISON & WILLIAMS MERCANTILE LIMITED

Executive Summary

Harrison & Williams Mercantile Limited has demonstrated financial improvement by moving into a positive net asset position in the latest reporting year, supported by timely compliance with statutory filings and stable management. However, the company’s small capital base, significant current liabilities, and limited operational scale present moderate solvency and liquidity risks. Further due diligence on cash flow dynamics and business model sustainability is recommended before investment consideration.

HARRISON & WILLIAMS MERCANTILE LIMITED - Analysis Report

Company Number: 12728808

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: MEDIUM
   The company has shown a turnaround from net liabilities in prior years to net assets in the latest financial year. However, the net asset base remains modest (£14,193) with relatively high current liabilities (£62,764), indicating moderate solvency risk. The absence of employees and relatively low fixed assets imply limited operational scale and potential vulnerability to cash flow fluctuations.

2. Key Concerns:

• Liquidity Position: While net current assets improved to £28,375 in 2024 from a negative position in 2023, current liabilities remain significant relative to total assets, which may pressure short-term cash flows.
• Small Capital Base: Share capital is nominal (£1), which limits financial buffer and may constrain the company’s ability to absorb losses or fund growth.
• Limited Operational Scale: Zero reported employees and minimal fixed assets suggest limited operational capacity and potential dependence on the directors or external contractors, which may impact sustainability.

3. Positive Indicators:

• Improved Financial Position: The company reversed prior losses and moved from net liabilities (£-2,288) in 2023 to net assets (£14,193) in 2024, demonstrating better financial management or improved trading performance.
• Filing Compliance: Accounts and confirmation statements are filed timely with no overdue filings, indicating good regulatory compliance and governance discipline.
• Stable Management: Both directors have been in place since incorporation, providing continuity in leadership.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess repayment risks and liquidity duration.
• Review cash flow statements or bank statements (if available) to evaluate actual liquidity and working capital management.
• Understand the business model given no employees and minimal fixed assets—clarify reliance on contractors or other cost structures.
• Assess customer and supplier concentration risks given the advertising agency SIC code and small scale.
• Confirm no director disqualifications or regulatory issues beyond the available data.