HAXBY DEVELOPMENTS LTD

Executive Summary

Haxby Developments Ltd currently presents a high-risk profile due to sustained negative equity and net current liabilities, alongside reliance on intra-group financing and limited operational activity. While liquidity has improved and regulatory compliance is up to date, the company's solvency and operational sustainability remain significant concerns. Further investigation into related party funding and operational status is essential to fully assess investment risk.

HAXBY DEVELOPMENTS LTD - Analysis Report

Company Number: 13208430

Analysis Date: 2025-07-29 14:35 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent net current liabilities and negative shareholders' funds over multiple years, indicating ongoing solvency concerns. The reduction in liabilities from £270,480 in 2023 to £71,080 in 2024 is positive but the company remains technically insolvent as at the latest accounts date. The absence of fixed assets at year-end and the dormant SIC code suggest minimal trading activity or asset base to support operations.

2. Key Concerns:

• Solvency and Negative Equity: Shareholders' funds are negative (£-4,865 as of 2024), with net current liabilities (£-4,765), indicating the company owes more than it owns and may struggle to meet obligations without external support.
• Reliance on Related Party Funding: The majority of current liabilities are amounts owed to group undertakings (£70,600 in 2024), suggesting dependence on intra-group financing rather than independent cash generation.
• Dormant Classification and Minimal Activity: The SIC code '99999' for dormant company status and the lack of fixed assets at 2024 year-end imply limited or no active business operations, raising questions about ongoing business viability and sustainability.

3. Positive Indicators:

• Improved Liquidity Position: Cash at bank increased to £66,315 in 2024 from £22,665 in 2023, partially offsetting liabilities and indicating some cash inflow or financing to support operations.
• No Filing Overdues: The company is current with statutory filings (accounts and confirmation statements), suggesting compliance with regulatory requirements is maintained.
• Single Director with No Public Disqualifications: The sole director, Mr. Philip Geoffrey Haxby, has no indicated disqualification records, reducing governance risk from management misconduct.

4. Due Diligence Notes:

• Investigate the nature of amounts owed to group undertakings and the sustainability of this related party funding. Assess whether these are loans, trade payables, or other liabilities and the terms for repayment or forgiveness.
• Clarify operational status given the dormant SIC code conflicting with financial activity and the disposal of fixed assets in 2024. Confirm if the company is trading, dormant, or in a transitional phase.
• Review cash flow statements and profit & loss data (not filed here) to understand sources and uses of funds, and whether the company is generating or consuming cash from operations.
• Examine contingent liabilities, off-balance sheet commitments, or any pending litigation that may impact financial stability.
• Confirm the director's plans for addressing negative equity and solvency issues, including any restructuring or capital injections.