HARRY GEORGE DEVELOPMENTS LTD

Executive Summary

Harry George Developments Ltd currently faces elevated financial risk due to persistent negative net assets and substantial liabilities exceeding current assets, compounded by minimal liquidity. While the increase in investment property value offers some reassurance, the significant bank loan and lack of operational cash flow raise concerns about the company's ability to meet its obligations without further capital support or asset realization. Prospective investors should conduct detailed due diligence on the company’s financing arrangements, asset valuations, and operational plans before engagement.

HARRY GEORGE DEVELOPMENTS LTD - Analysis Report

Company Number: 12489784

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

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net assets and net current liabilities, alongside a large bank loan with substantial repayment obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets are negative (£18,900 as of March 2024), indicating liabilities exceed assets, which is a clear solvency red flag.
• Substantial Current and Long-Term Liabilities: Current liabilities remain very high (£188,634) compared to cash (£17,103), resulting in negative net current assets (-£171,531). Additionally, a bank loan of £300,035 falls due after more than one year, increasing long-term financial risk.
• No Employees and Minimal Operating Information: The company reports no employees and limited operational data, suggesting it may not be generating sufficient operational cash flow to service liabilities, potentially relying on investment property values or external funding.

3. Positive Indicators:

• Increase in Investment Property Value: Investment property increased significantly from £330,869 (2023) to £452,666 (2024), which may provide collateral value and potential future liquidity if disposed of.
• Timely Filing: The company has no overdue filings for accounts or confirmation statements, indicating compliance with statutory filing obligations.
• Stable Directorship: Directors have been in place since incorporation without any public record of disqualifications, which suggests stable governance.

4. Due Diligence Notes:

• Examine Bank Loan Terms: Review the bank loan agreement to understand repayment schedules, covenants, interest rates, and potential refinancing risks given the sizeable loan relative to equity.
• Assess Investment Property Valuation: Verify the valuation method and marketability of investment property assets to determine realistic realizable value under current market conditions.
• Review Cash Flow and Operational Strategy: Investigate how the company plans to improve liquidity and solvency, including revenue streams, operational plans, and any planned capital injections or asset disposals.
• Check for Related Party Transactions: Given no employees and low cash, determine if there are any significant transactions with directors or related parties that affect financial stability.
• Confirm No Further Undisclosed Liabilities: Ensure that all liabilities have been disclosed, especially contingent liabilities or guarantees that could impact solvency.