HASTINGS DYNAMICS LTD

Executive Summary

Hastings Dynamics Ltd is a very small, micro-entity company with minimal assets and equity, exhibiting a weak liquidity position and no operational staff. Although compliant with filing requirements and active, the company’s financial metrics indicate high risk regarding solvency and operational sustainability. Further investigation into its business activities and cash flows is advisable before considering investment.

HASTINGS DYNAMICS LTD - Analysis Report

Company Number: 13958053

Analysis Date: 2025-07-29 14:34 UTC

1. Risk Rating: HIGH
   The company exhibits minimal net assets and current assets roughly equal to current liabilities, indicating very tight liquidity. The net current assets are negative (£-71 in 2024), and shareholders' funds remain minimal (£71 in 2024), highlighting fragile solvency. The absence of employees and minimal fixed assets further suggest limited operational activity and scale.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£1,113) slightly exceed current assets (£1,042) in 2024, leaving a negative net working capital position, which may constrain the company's ability to meet short-term obligations promptly.
• Operational Viability: Zero employees and no fixed assets imply the company may not have ongoing operational capacity or infrastructure, raising questions about business sustainability.
• Scale and Financial Strength: The company’s micro-entity status with very low asset base and equity (shareholders’ funds of £71) signals limited financial resilience to absorb shocks or invest in growth.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, suggesting good regulatory compliance and governance discipline.
• Active Status: The company is active and not in liquidation or administration, indicating no immediate insolvency proceedings.
• Strong Ownership Control: A single director and 75-100% shareholder provides clear governance and decision-making authority.

4. Due Diligence Notes:

• Verify the nature of current liabilities and their maturity to assess actual liquidity pressure.
• Investigate the business model and revenue streams given zero employees and no fixed assets reported.
• Review cash flow statements or bank statements for recent months to confirm liquidity position.
• Confirm if the director has provided any financial support or guarantees to the company.
• Assess any contingent liabilities or off-balance-sheet obligations not reflected in micro-entity accounts.