Company Number: 14344191

Analysis Date: 2025-07-20 18:46 UTC

1. Risk Rating: LOW
   Hazelcott Ltd demonstrates a solid financial position with positive net current assets and net assets that have improved significantly over the last two years. The company is compliant with its filing deadlines and has no indicators of distress or regulatory issues. The balance sheet reflects prudent financial management for a micro/private limited company.

2. Key Concerns:

• Corporation Tax Liability: The current liabilities include a significant corporation tax creditor (£3,516 in 2024, up from £1,148 in 2023). This requires monitoring to ensure timely payment and avoid penalties.
• Reliance on Director Loan: Though minimal (£189), the director’s loan balance has increased, indicating some reliance on director funding which should be reviewed for sustainability.
• Limited Operational Scale: The company has only one employee (the director), and the small scale may constrain growth and operational resilience.

3. Positive Indicators:

• Strong Liquidity Position: Cash on hand has increased to £4,369 with net current assets rising to £3,784, indicating good short-term liquidity and ability to meet immediate obligations.
• Growing Net Assets: Shareholders’ funds have more than doubled from £1,816 in 2023 to £4,192 in 2024, suggesting retained earnings growth and capital strengthening.
• Compliance and Governance: Accounts and confirmation statements are up to date with no overdue filings; the company avails of the small company exemption appropriately, demonstrating regulatory compliance.

4. Due Diligence Notes:

• Verify the nature and timing of the corporation tax liability to confirm payment plans or risks of future penalties.
• Review director loan account terms and any plans for repayment or further loans to assess financial reliance on key individuals.
• Investigate business model sustainability given the single-employee structure and reliance on work-in-progress stock valuation.
• Confirm absence of any pending legal or regulatory actions not disclosed in the accounts.