HAWKES PROJECTS (JS) LTD

Executive Summary

Hawkes Projects (JS) Ltd presents a weak financial profile with minimal net assets and tight liquidity supported mainly by director loans. The company’s balance sheet deterioration and reliance on informal funding pose significant credit risk. Credit facilities should be declined until financial health improves and stronger cash flow visibility is demonstrated.

HAWKES PROJECTS (JS) LTD - Analysis Report

Company Number: 12776401

Analysis Date: 2025-07-29 17:24 UTC

1. Credit Opinion: DECLINE. Hawkes Projects (JS) Ltd is a micro private limited company operating in construction, with limited financial strength and very thin equity. The company shows a sharp decline in net assets from £611 in 2023 to just £25 in 2024, reflecting erosion of capital. Current liabilities nearly equal current assets, resulting in marginal net working capital of only £971. The company relies heavily on director loans (£27,506) with no fixed repayment schedule, indicating potential liquidity risk. The absence of profitability or retained earnings and minimal fixed assets limit business resilience. The director is the sole significant controller, which concentrates operational and financial risk. Overall, the financial profile and weak balance sheet do not support new or increased credit facilities without substantial mitigating factors.

2. Financial Strength: The balance sheet is fragile with net assets reduced to £25, a decline from £611 the previous year. Fixed assets are negligible (£554) and current liabilities are high (£55,815), leaving just a £971 net current asset buffer. The company depends on director advances which have doubled in one year, indicating external borrowing from related parties rather than third-party lenders. The company’s equity is almost depleted, undermining its capacity to absorb setbacks or losses. The lack of reserves and the thin capital base signal very low financial strength.

3. Cash Flow Assessment: Current assets (£56,786) are nearly matched by current liabilities (£55,815), resulting in a very narrow working capital margin. The company’s liquidity position is tight, with little room for cash flow volatility. Reliance on director loans without fixed repayment terms suggests cash flow support is informal and potentially unstable. No indication of strong cash generation from operations is present to improve liquidity independently. This raises concerns about the ability to meet short-term obligations and service any external debt.

4. Monitoring Points:

• Track net assets and equity movements for further erosion or improvement.
• Monitor director loans for repayment or further advances.
• Watch current assets versus liabilities to assess liquidity trends.
• Review operating performance and cash flow generation when next accounts are filed.
• Confirm whether the company secures external financing or relies increasingly on director funding.
• Observe any changes in management or control that might affect credit risk.