Company Number: 13794633

Analysis Date: 2025-07-20 17:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Hayris Design & Build Limited is an active micro private limited company engaged in specialised design activities. The company has been trading since December 2021 and employs an average of 3 staff, including directors. The latest accounts to 31 December 2023 show a small but positive net asset base (£3,825), though working capital is negative (£-10,722), indicating current liabilities exceed current assets. The decline in net assets from £25,472 in 2022 to £3,825 in 2023 suggests some financial deterioration. Directors appear stable with no adverse records. Given its small size, short operating history, and modest financials, credit approval should be conditional on close monitoring and possibly requiring personal guarantees or additional security.

2. Financial Strength:
   The balance sheet shows fixed assets of £24,672 and current assets of £108,528 against current liabilities of £120,357, producing a net current liability position of £-10,722. This indicates liquidity pressure in the short term. Total net assets are positive but have declined sharply over the last year, primarily due to increased accruals and deferred income (£10,125) and higher current liabilities. The company’s micro classification and small equity base limit its ability to absorb financial shocks, and the reduction in capital and reserves is a concern. However, the presence of some fixed assets and continuing shareholder equity provides some financial cushion.

3. Cash Flow Assessment:
   The negative net current assets position implies potential cash flow constraints. Without detailed cash flow statements, the working capital deficit suggests the company may be reliant on short-term financing or director funding to meet immediate liabilities. The company’s average staff count and operating in a niche specialised design sector may allow for flexible cost management. Nevertheless, liquidity risk is elevated, and timely collection of receivables and controlling payables will be critical to maintaining solvency.

4. Monitoring Points:

• Monitor working capital trends closely, particularly current assets vs. current liabilities.
• Watch net asset levels and any further erosion of shareholder funds.
• Review subsequent management accounts for improvement or further deterioration in liquidity.
• Assess directors’ ongoing support and any personal financial backing.
• Keep track of payment behaviour on existing trade or credit facilities.
• Watch for any overdue filings or changes in credit terms with suppliers.