H&D PROPERTY DEVELOPERS LIMITED

Executive Summary

H&D PROPERTY DEVELOPERS LIMITED exhibits a stable but minimal financial position with a significant reduction in net assets over the last year. While short-term liquidity is positive, the company’s limited financial cushion and high personnel costs relative to turnover warrant cautious credit exposure. Ongoing monitoring of profitability, working capital, and asset base is recommended to mitigate credit risk.

H&D PROPERTY DEVELOPERS LIMITED - Analysis Report

Company Number: 14210835

Analysis Date: 2025-07-29 13:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   H&D PROPERTY DEVELOPERS LIMITED is a micro-entity with modest turnover and limited asset base. While the company remains active and compliant with filings, its net assets have materially declined from £34,250 in 2023 to £2,240 in 2024, indicating a significant reduction in financial strength. The current year's profit of £6,010 is positive but relatively small. The company’s ability to service debt is currently adequate given positive working capital, but the sharp drop in net assets signals increased risk. Credit should be extended cautiously, with limits aligned to the company’s current scale and close monitoring of financial trends.

2. Financial Strength:
   The balance sheet shows a steep decline in net current assets from £34,150 in 2023 to £2,140 in 2024, primarily due to a reduction in current assets from £36,710 to £6,710. Current liabilities have increased slightly to £4,570. Net assets dropped significantly, which may reflect asset disposals, write-downs, or increased expenses. Shareholders’ funds mirror this decline. The company’s capital base is minimal, limiting its buffer against operational or market shocks. The low asset base and small equity position suggest limited financial resilience.

3. Cash Flow Assessment:
   Current assets are modest but exceed current liabilities, indicating positive net working capital. However, the reduction in current assets and increased current liabilities year-on-year suggest tightening liquidity. The company employs two staff members and has incurred staff costs of £84,667, which is a substantial portion of turnover and may pressure cash flows if revenues do not grow. There is no off-balance sheet debt disclosed. Liquidity appears sufficient in the short term but fragile; cash flow management will be critical.

4. Monitoring Points:

• Net assets and working capital trends, particularly any further declines in current assets or increases in liabilities.
• Profitability trajectory: monitor future profit/loss figures to ensure operational viability.
• Turnover growth or contraction, to assess revenue sustainability.
• Staff cost ratio to turnover, as high fixed costs relative to revenues may strain liquidity.
• Timely filing of accounts and confirmation statements to maintain regulatory compliance and transparency.