Company Number: 13126690

Analysis Date: 2025-07-20 16:35 UTC

1. Credit Opinion: DECLINE
   Haymans Construction Ltd currently demonstrates weak financial health with negative net assets and net current liabilities that indicate an inability to cover short-term obligations with available current assets. The company’s net liabilities position worsened slightly from 2023 to 2024, reflecting cumulative losses and insufficient equity. The reliance on director loans (£20,815) to fund operations highlights limited external creditworthiness and potential cash flow dependency on insiders, increasing the risk profile. Additionally, no employees are recorded, suggesting minimal operational scale or possible underdevelopment, which may impact business continuity and growth prospects. Given these factors, the company lacks sufficient financial strength and liquidity to confidently service new debt or credit facilities without imposing significant risk to the lender.

2. Financial Strength:
   The balance sheet reveals tangible fixed assets of £6,750, which provides some asset backing, but total net current liabilities stand at £15,443, with cash reserves of only £8,737. Shareholders’ funds are negative at £8,693, indicating that accumulated losses exceed capital invested. The increase in loans from directors from £14,862 to £20,815 over one year shows growing reliance on internal funding rather than operational cash flow. Overall, the company’s financial structure is fragile, with insufficient equity buffer to absorb further losses or economic shocks.

3. Cash Flow Assessment:
   With current liabilities exceeding current assets by £15,443 and cash of only £8,737, the company faces a liquidity shortfall. The negative working capital position indicates potential difficulties in meeting short-term commitments as they fall due. The lack of employees and small cash balances suggest limited operational cash inflows. Dependence on director loans to fund working capital may not be sustainable. There is no evidence of positive operating cash flow or profitability to improve liquidity in the near term.

4. Monitoring Points:

• Track improvement or further deterioration of net current assets and net liabilities in future accounts.
• Monitor director loan balances and any new external financing arrangements.
• Review operational scale and whether employee numbers increase to support revenue growth.
• Assess cash flow generation from operations and ability to reduce reliance on internal loans.
• Watch for any late filings or indications of financial distress such as administration or liquidation notices.