Company Number: 12713603

Analysis Date: 2025-07-29 16:55 UTC

1. Risk Rating: MEDIUM
   The company shows signs of financial strain primarily evidenced by a significant increase in liabilities falling due after one year and a negative net current asset position as of the latest financial year. While net assets remain positive, the erosion of working capital and increased long-term liabilities raise concerns about short-term liquidity and solvency risks.

2. Key Concerns:

• Negative Net Current Assets: As of 31 July 2024, current liabilities (£67,601) exceed current assets (£19,120) resulting in a net current liability of approximately £24,838, indicating potential liquidity difficulties in meeting short-term obligations.
• Substantial Long-Term Liabilities: The company reported £67,601 of creditors due after more than one year in 2024, a new development compared to prior years where no such liabilities existed. This may suggest increased debt or deferred payments that could pressure future cash flows.
• Decline in Net Assets and Equity: Net assets have almost halved from £33,802 in 2023 to £16,562 in 2024, implying either losses or asset write-downs. The drop in shareholders’ funds reduces the cushion against adverse financial events.

3. Positive Indicators:

• Consistent Filing and Compliance: The company is up to date with both accounts and confirmation statement filings and is not overdue, reflecting good governance in regulatory compliance.
• Micro-Entity Status: As a micro-entity, Hashtag Motion Limited benefits from simplified reporting requirements that may reduce administrative costs.
• Stable Employment: The average number of employees remained steady at two, suggesting a controlled cost base and operational consistency.

4. Due Diligence Notes:

• Examine Nature and Terms of Long-Term Creditors: Further review is needed on the £67,601 long-term liabilities to understand repayment terms, interest rates, and covenants that could impact solvency.
• Profit and Loss Account Analysis: Information on profitability, cash flows, and any exceptional items is lacking. Access to the P&L and cash flow statements would clarify operational sustainability and the reason for the decline in net assets.
• Director and Related Party Transactions: Given the company is closely held with directors also acting as secretary and residing at the same address, scrutiny of related party transactions and potential financial support from shareholders is advisable.