HARRYS GRAB LTD

Executive Summary

HARRYS GRAB LTD exhibits high financial risk characterized by recurring negative net assets and significant working capital deficits, which raises concerns about its ability to meet obligations and sustain operations. However, the company maintains regulatory compliance with timely filings and stable management. Further investigation into cash flow and operational viability is recommended before considering investment.

HARRYS GRAB LTD - Analysis Report

Company Number: 13885328

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities over three consecutive years, indicating solvency concerns and potential financial distress.

2. Key Concerns:

• Negative Net Assets: The company has a net liability position of £3,158 as of 28-Feb-2024, slightly improved from prior years but still negative, signaling erosion of shareholder equity.
• Working Capital Deficit: Net current assets are significantly negative (£-44,404), indicating current liabilities exceed current assets by a wide margin and raising liquidity risk.
• Limited Operational Scale: Micro-entity status with only 1 employee and relatively low fixed assets value suggests limited operational capacity and possibly low revenue generation, which may challenge sustainability.

3. Positive Indicators:

• Timely Filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting regulatory compliance and governance discipline.
• Stable Directorship: Same two directors since incorporation with significant shareholding and voting control, indicating stable management structure.
• Slight Improvement in Current Assets: Current assets increased from £1,634 to £8,507 year over year, showing some improvement in liquid resources.

4. Due Diligence Notes:

• Investigate the company’s cash flow and revenue streams to understand how it meets short-term obligations given the working capital deficit.
• Review related party transactions or loans from directors as this may impact financial stability.
• Assess the business model and market position in the renting/leasing of construction machinery and waste collection, particularly given the micro scale and negative equity.
• Confirm absence of any director disqualifications or regulatory actions beyond public records.
• Examine any contingent liabilities or off-balance sheet obligations not disclosed in micro-entity accounts.