HAWK OILS LTD

Executive Summary

Hawk Oils Ltd demonstrates high financial risk characterized by sustained and growing negative net assets and working capital deficits. While compliant with filing requirements and operationally active, the company’s solvency and liquidity position raise serious concerns about its ability to meet obligations without external financial support. Further due diligence on director loans, cash flows, and operational viability is recommended.

HAWK OILS LTD - Analysis Report

Company Number: NI671423

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns as of the most recent financial year ending July 2024, with net current liabilities and net assets substantially negative and worsening over the past four years. This financial position signals an inability to meet short-term and long-term obligations without additional capital or restructuring.

2. Key Concerns:

• Severe Negative Net Assets and Working Capital Deficit: Net assets stand at -£24,271 with net current liabilities of -£26,031, indicating the company’s liabilities exceed its assets by a large margin and it lacks sufficient current assets to cover current liabilities.
• Increasing Director Loans: The director, Mr. Brendan McBarron, has a substantial and growing loan balance owed to the company (£22,970 in 2024), which may indicate reliance on director funding but also raises questions about cash flow management and repayment capability.
• Absence of Audit and Limited Disclosures: The company qualifies for audit exemption and has not undergone an audit, limiting the assurance over the financial statements. The accounts provide minimal information regarding operational performance or cash flow, restricting deeper analysis.

3. Positive Indicators:

• Timely Filing Compliance: The company’s accounts and confirmation statements are up-to-date with no overdue filings, indicating good regulatory compliance.
• Active Status and No Insolvency Proceedings: The company remains active with no liquidation, administration, or receivership processes underway.
• Single Director with Consistent Appointment: The director has been stable since incorporation, which may suggest consistent management.

4. Due Diligence Notes:

• Investigate the nature, terms, and repayment plans related to the director’s loan account and whether these amounts are recoverable or represent ongoing financial support.
• Seek detailed cash flow statements and profit and loss accounts to understand operational profitability, cash generation, and the impact of trading activities on financial position.
• Review any contingent liabilities, guarantees, or off-balance-sheet commitments that may exacerbate financial risk.
• Consider the company’s business model and market conditions in mineral oil refining, particularly any external risks or regulatory challenges specific to this industry.
• Confirm whether additional capital injections or creditor arrangements have been made post year-end to support liquidity.