HEADLAND HEARING LTD

Executive Summary

Headland Hearing Ltd currently exhibits weak financial health with persistent negative equity and significant working capital deficits. The company’s micro scale and lack of liquidity support undermine its ability to service debts and sustain operations without external intervention. Given these factors, a credit facility is not recommended at this time without substantial financial improvement or additional security.

HEADLAND HEARING LTD - Analysis Report

Company Number: 12750738

Analysis Date: 2025-07-29 16:55 UTC

1. Credit Opinion: DECLINE
   Headland Hearing Ltd shows persistent negative net assets and net current liabilities over the past four years, indicating ongoing financial distress. The company’s inability to generate positive working capital and the absence of any director loans or external financial support raise significant concerns about its capacity to meet short-term obligations. Despite being active and compliant with filing requirements, the financial trajectory is negative, and the company’s small scale and losses limit its resilience to economic shocks.

2. Financial Strength:
   The balance sheet reveals net liabilities of £7,825 as of July 2024, an improvement from £9,111 the previous year but still negative. Fixed assets remain minimal (£6,796), and current liabilities (£16,863) vastly exceed current assets (£1,928), resulting in a working capital deficit of £14,621. The company is classified as a micro-entity with only one employee (the director), reflecting limited operational scale. Shareholders’ funds are negative, evidencing accumulated losses and eroded equity.

3. Cash Flow Assessment:
   Current assets consist mainly of cash and receivables totaling less than £2,000 against current liabilities nearing £17,000. This significant mismatch suggests liquidity strain and poor short-term financial health. The absence of director loans or guarantees means no additional liquidity support has been provided to offset cash flow issues. Working capital deficits imply the company may struggle to fund day-to-day operations without external financing or capital injection.

4. Monitoring Points:

• Monitor improvements or deterioration in net current assets and net liabilities in subsequent filings.
• Watch for any director loans or external financing that may alleviate liquidity pressures.
• Track the company’s turnover and profitability trends to assess if losses are being reversed.
• Observe any changes in the director or ownership structure that could impact financial stewardship or strategic direction.