Company Number: 13130900

Analysis Date: 2025-07-29 18:13 UTC

1. Credit Opinion: DECLINE
   HAYWARDTHOMAS LTD exhibits signs of financial stress and potential insolvency risk. The micro-entity’s net assets have deteriorated into negative territory (from -£8,605 in 2023 to -£10,336 in 2024), indicating that total liabilities exceed total assets. The negative net current assets (working capital) position (-£20,227 in 2024) signals liquidity issues, with current liabilities significantly outweighing current assets. Lack of employees and minimal current assets raise concerns about operational capacity and cash flow generation. Given these factors, the company appears unable to comfortably meet short-term obligations or sustain credit exposure without substantial improvement or additional capital infusion.

2. Financial Strength:
   The balance sheet reflects a declining fixed asset base (£9,891 in 2024, down from £14,709 in 2021) and consistently negative net current assets. Shareholders’ funds are negative and shrinking, which implies accumulated losses or liabilities exceeding assets. The company’s micro classification and minimal share capital (£100) limit financial buffer capacity. The departure of one director in late 2023 may also affect governance and strategic oversight. Overall, the financial structure is weak, with inadequate equity cushion and poor liquidity.

3. Cash Flow Assessment:
   Current assets (£2,544) are substantially lower than current liabilities (£22,771), resulting in a large working capital deficit (-£20,227). This suggests strained liquidity and potential difficulty in meeting creditor demands on time. The absence of employees may reduce operating expenses but also implies limited revenue generation capability. Without further cash inflows or restructuring, the company’s ability to generate positive operating cash flow is doubtful. No audit or detailed cash flow statements are available, limiting deeper cash flow analysis.

4. Monitoring Points:

• Track any capital injections or shareholder loans to improve liquidity and net asset position.
• Monitor payment patterns to suppliers and creditors to detect worsening cash flow pressures.
• Watch for changes in director appointments or management that could affect financial control.
• Review subsequent filings for improved turnover, asset management, or reduction in liabilities.
• Assess potential impact of industry conditions in roofing activities (SIC 43910) on business viability.