HARVEY LOCATIONS LIMITED

Executive Summary

Harvey Locations Limited is a new micro-entity with a fragile financial position, showing negative net assets and significant working capital deficiency. The company currently lacks the financial strength and liquidity to support additional credit exposure. Approval is not recommended until material improvements in financial stability and cash flow capacity are demonstrated.

HARVEY LOCATIONS LIMITED - Analysis Report

Company Number: 14823192

Analysis Date: 2025-07-19 12:26 UTC

1. Credit Opinion:
   DECLINE. Harvey Locations Limited is a newly incorporated micro-entity (since April 2023) with its first financial statements to April 2024 showing net liabilities of £13,774 and negative working capital of £64,607. The company's balance sheet is weak with current liabilities exceeding current assets by a large margin. This indicates an inability to cover short-term obligations from available liquid assets. The absence of profitability or tangible equity, combined with the early stage of the business, presents a high credit risk. Without evidence of external funding sources or strong cash inflows, the company is unlikely to meet debt servicing requirements reliably.

2. Financial Strength:
   The company’s total fixed assets stand at £51,633 but are outweighed by significant current liabilities of £75,844, resulting in net current liabilities of £64,607 and net liabilities overall of £13,774. Shareholders' funds are negative, reflecting an erosion of capital or initial losses. As a micro-entity, the filing is unaudited but shows no accumulated profits or reserves. This weak financial position suggests limited buffer against operational or market shocks and challenges in obtaining additional credit without substantial collateral or guarantees.

3. Cash Flow Assessment:
   Current assets of £11,237, presumably including cash and receivables, are insufficient to cover the current liabilities. Negative net current assets indicate potential liquidity stress. No detailed cash flow statement is provided, but the balance sheet position implies that short-term cash outflows exceed inflows or available liquid resources. Working capital is negative, showing the company may struggle to finance day-to-day operations without additional funding. Monitoring cash conversion cycles and access to financing will be critical.

4. Monitoring Points:

• Future trading performance and profitability to restore positive equity and working capital.
• Timely payment of short-term liabilities to avoid creditor pressure or insolvency risk.
• Directors’ ability to inject further capital or secure external financing.
• Any material changes in asset values or liabilities in subsequent filings.
• Cash flow trends and liquidity ratios in future accounting periods.