CompaniesInTheUK

HEALIOS LTD

Company number 08459279 ·

Active

This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.

Risk Analysis: HEALIOS LTD (08459279)

1. Risk Rating: HIGH

Justification: The company exhibits severe balance sheet insolvency with net liabilities of £1.92 million and a shareholders' deficit of £4.46 million as at December 2019. The dramatic deterioration from positive net assets of £610,838 (2018) to negative £1.92 million (2019) represents a £2.5 million swing in a single year, raising fundamental questions about the company's viability as a going concern without continued external funding.

2. Key Concerns

Concern 1: Balance Sheet Insolvency

Net assets deteriorated from +£610,838 (2018) to -£1,923,880 (2019). Current liabilities (£1.96M) exceed current assets (£1.16M) by £794,626, leaving the company unable to meet short-term obligations from existing resources. The accumulated P&L deficit nearly tripled from -£1.93M to -£4.46M, indicating significant ongoing operational losses.

Concern 2: Creditor Position Deterioration

Creditors due within one year surged from £630,736 to £1,959,232 – a 211% increase. While trade creditors actually decreased (from £396,097 to £158,460), "other creditors" within one year ballooned to £1,572,638, and a new £1,572,000 advance subscription agreement appears in long-term creditors. This suggests the company is heavily reliant on convertible loan instruments and advance payments to fund operations.

Concern 3: Director Advances

Director loans outstanding total £217,430, with Dr L Hansen's balance growing from £151,718 to £201,978. While some repayment activity occurred (£56,351 repaid in 2019), net advances to directors increased by £43,909 during a period of significant losses. This warrants scrutiny regarding cash prioritisation when the company carries substantial deficits.

3. Positive Indicators

  • Cash Position Strengthened: Cash increased from £506,816 to £792,226, suggesting the company successfully raised capital during 2019, likely through the advance subscription agreement and convertible loans referenced in the accounts.

  • Revenue Growth Indicators: Employee headcount more than doubled from 26 to 55, and trade debtors increased from £95,880 to £370,958, both suggesting significant revenue expansion during 2019.

  • Regulatory Compliance: Accounts and confirmation statements are filed and up to date with no overdue filings. The company maintains active status and is not in liquidation or administration.

  • Director Awareness: Note 10 of the accounts explicitly acknowledges the net negative asset position and provides context regarding convertible loans pending equity conversion and customer advance payments, suggesting management awareness and intention to address the position.

4. Due Diligence Notes

Item Investigation Required
Going Concern Basis The accounts contain no explicit going concern statement. Given the net liability position, investigate whether auditors or directors have assessed viability beyond 12 months and what conditions must be met for the company to continue trading.
Convertible Loan Terms The £1.572M advance subscription agreement and other convertible instruments require examination – specifically conversion terms, maturity dates, interest obligations, and any change-of-control triggers that could force repayment.
Post-2019 Financial Position The latest filed accounts cover only to December 2019. Given the significant losses and cash burn rate evident, the current position (potentially 4+ years later) could be materially different. Accounts to December 2025 are referenced as the next filing period – clarify whether more recent management accounts exist.
Director Loan Terms The purpose, repayment terms, and security for Dr Hansen's £201,978 advance should be clarified. Verify whether these are arm's-length arrangements or effectively equity withdrawals.
Customer Advance Income Note 10 references "significant income received in advance from customers." Investigate the nature of these contracts – are they NHS or local authority contracts with delivery obligations that could create liability if not fulfilled?
Group Structure The accounts category is "Group," yet the filed accounts appear to be for the parent only. Investigate subsidiary positions, inter-company balances, and whether group-level liabilities are captured.
Share Capital Adequacy Called-up share capital is only £135, with the vast majority of equity funding through share premium. Clarify the capital structure and any outstanding commitments from shareholders.
Recent Director Changes Elizabeth Perry resigned March 2026. Investigate whether this reflects board restructuring or potential concerns about the company's direction.

Perspective: Investment Risk Assessor · Model: glm-5.1 · Generated 21 August 2026