HAYDEN POWER PROPERTY MANAGEMENT LTD

Executive Summary

Hayden Power Property Management Ltd demonstrates some balance sheet improvement but remains exposed to liquidity risk due to high current liabilities exceeding current assets. Approval is recommended on a conditional basis with stringent monitoring of cash flow and working capital to ensure ongoing debt servicing capability. The company’s micro scale and sole director control increase operational risk but also allow for swift management action if needed.

HAYDEN POWER PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 12765418

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Hayden Power Property Management Ltd shows a small but improving net asset base and increased current assets over the past year, indicating some growth in financial resources. However, significant current liabilities and negative net current assets present liquidity risks. The company is micro-sized with limited capital, and control rests solely with one director, which concentrates risk. Approval is recommended with conditions including close monitoring of cash flow and working capital management to ensure timely debt servicing.

2. Financial Strength:
   The company’s net assets improved from £2,284 in 2023 to £6,208 in 2024, reflecting retained earnings or capital injections, but total liabilities, especially current liabilities, remain high at £8,732. Fixed assets are minimal (£468), typical for a service-oriented real estate management firm. The balance sheet shows some improvement in asset base, but the company is still thinly capitalized and holds negative net current assets (-£5,623), indicating an overextension of short-term liabilities relative to liquid assets.

3. Cash Flow Assessment:
   Current assets increased substantially from £383 in 2023 to £3,109 in 2024, which is a positive signal for liquidity. However, current liabilities have also grown from £2,747 to £8,732. Negative net current assets suggest working capital shortages, raising concerns about the company's ability to meet short-term obligations without refinancing or additional capital. The increase in employees from 1 to 2 may indicate growth but also adds to fixed operating costs.

4. Monitoring Points:

• Track quarterly cash flow statements to assess liquidity improvements or deterioration.
• Monitor current liabilities closely, especially any overdue payables or creditor pressures.
• Watch for any capital injections or shareholder loans that improve working capital.
• Review director conduct and governance given sole control by one individual to mitigate operational risks.
• Assess revenue growth and profitability trends in subsequent accounts filings.