HAWKINS EVANS PROPERTY LTD

Executive Summary

HAWKINS EVANS PROPERTY LTD exhibits high financial risk primarily driven by negative net assets and significant creditor obligations exceeding total assets. While regulatory compliance and asset growth are positive, the company's solvency and liquidity pose substantial concerns that warrant detailed review before investment consideration.

HAWKINS EVANS PROPERTY LTD - Analysis Report

Company Number: 12778402

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

1. Risk Rating: HIGH
   The company's financials indicate significant solvency and liquidity concerns, with net liabilities reported for the last two years and creditor obligations exceeding total assets by a large margin. The absence of employees and minimal share capital further heighten operational risk.

2. Key Concerns:

• Negative Net Assets: The company shows net liabilities of approximately £11,609 as of July 2024, indicating insolvency on a balance sheet basis.
• High Long-Term Creditors: Creditors due after more than one year exceed £333,000, substantially greater than total assets (~£321,000), suggesting over-leverage and potential difficulty meeting obligations.
• No Employees and Minimal Share Capital: Zero employees reported and only £1 in share capital raise questions about operational capacity and financial buffer.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are filed on time, reflecting regulatory compliance and good governance practice.
• Increasing Fixed Assets: Fixed assets increased significantly from £124k to £310k year-on-year, possibly reflecting property acquisitions consistent with the SIC code (own real estate trading).
• Stable Directorship: The principal directors remain in place with clear control structure, indicating managerial continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess refinancing risk or potential covenant breaches.
• Review cash flow statements and bank balances to understand liquidity position beyond balance sheet snapshots.
• Confirm the valuation and liquidity of the fixed assets to establish if they can be leveraged or sold to improve solvency.
• Examine the company's trading performance and contracts to determine if the business model is sustainable without employees.
• Assess any related party transactions or director loans that may impact financial stability.