HARTLEY LIVING LTD

Executive Summary

Hartley Living Ltd operates in property letting with a solid asset base in investment property but faces liquidity challenges due to persistent negative working capital and low cash reserves. While regulatory compliance is maintained and shareholders’ funds have grown, the unaudited and abridged nature of the accounts limits full transparency. Careful scrutiny of cash flow management and liability structure is recommended before investment consideration.

HARTLEY LIVING LTD - Analysis Report

Company Number: 12715429

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: MEDIUM
   The company shows substantial fixed assets in investment property, but persistent negative net current assets indicate liquidity strain. The absence of audit and limited cash reserves suggest caution, although it remains solvent with positive shareholders' funds.

2. Key Concerns:

• Negative Working Capital: Net current assets have been significantly negative for multiple years (e.g., -£289k in 2024), indicating that current liabilities exceed current assets by a large margin, raising liquidity concerns.
• Low Cash Reserves: Cash at bank remains low relative to current liabilities (£9.7k cash vs. £299k current liabilities in 2024), suggesting potential difficulties in meeting short-term obligations promptly.
• Unaudited Abridged Accounts: The accounts are unaudited and abridged, limiting the available detailed financial scrutiny, which may obscure risks or contingent liabilities.

3. Positive Indicators:

• Stable Investment Property Asset Base: The company holds investment property valued at approximately £395k, unchanged year-on-year, which underpins the balance sheet and indicates asset stability.
• Consistent Shareholders’ Funds Growth: Shareholders' funds increased from £7.7k in 2020 to £105.7k in 2024, signaling retained earnings accumulation and overall net asset growth.
• Compliance with Filing Requirements: No overdue accounts or confirmation statements were noted, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Verify the liquidity management strategies and cash flow forecasts to assess how the company plans to address negative net current assets and meet short-term liabilities.
• Obtain details on investment property valuation methods and confirm whether any fair value adjustments have been independently verified.
• Review detailed profit and loss accounts, tax position, and any off-balance sheet liabilities not disclosed in the abridged accounts.
• Investigate the nature and maturity profile of current liabilities to evaluate refinancing or payment risk.
• Consider the directors’ plans or disclosures regarding working capital improvement or capital injections.