HAWORTH PROPERTY MANAGEMENT LIMITED

Executive Summary

HAWORTH PROPERTY MANAGEMENT LIMITED is a start-up entity with a fragile financial position characterized by negative net assets and large short-term liabilities largely owed to related parties. Current liquidity is inadequate to cover obligations, and there is no evidence yet of operational profitability or external funding support. Credit facilities are not recommended until the company demonstrates improved financial stability, independent asset valuations, and positive cash flows.

HAWORTH PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 14719053

Analysis Date: 2025-07-29 19:11 UTC

1. Credit Opinion: DECLINE
   HAWORTH PROPERTY MANAGEMENT LIMITED is a newly incorporated private limited company (since March 2023) with limited trading history. The latest accounts to 31 March 2024 show a weak financial position with net liabilities of £13,633 and a large net current liability of £471,818. The company holds investment property valued at £458,185 but has significant short-term creditors (£480,833) largely comprising related party loans. There is no independent valuation of the property and no evidence of profitability or positive cash flows. The company’s ability to service debt or meet obligations is therefore questionable at this stage. Furthermore, the reliance on unsecured, interest-free related party loans to fund operations indicates limited external financial support and potential liquidity risk.

2. Financial Strength:
   The balance sheet reflects a negative net asset position primarily due to significant current liabilities exceeding current assets by £471,818. Fixed assets (investment property) form the major part of total assets (£458,185) but there is no external verification of fair value. No depreciation is recorded, and there is no evidence of accumulated profits. Shareholders’ funds are negative (£13,633), indicating that the company is undercapitalized relative to its obligations. The large creditor balance owed to a related party (Haworth Financial Management) is a concern for financial resilience since it is repayable on demand, creating risk of sudden cash outflows.

3. Cash Flow Assessment:
   Current cash balances are minimal (£3,996) and working capital is deeply negative. The company’s liquidity position is weak, with current liabilities far exceeding current assets. The absence of audit and limited disclosure on revenue and profitability restricts visibility on cash generation ability. The reliance on director and related party funding suggests the company does not generate sufficient operating cash flows to cover short-term obligations. This weak liquidity profile reduces confidence in the company’s capacity to meet immediate creditor demands without additional external support.

4. Monitoring Points:

• Development of profitability and positive cash flow from operations in the next accounting periods.
• Changes in the valuation or independent appraisal of the investment property asset.
• Reduction in related party creditor balances or replacement with more stable funding sources.
• Timely filing of accounts and confirmation statements to monitor compliance and ongoing operational status.
• Any director changes or external financing arrangements that could improve financial stability.