HEBRIDEAN ISLES ACCOMMODATION LTD

Executive Summary

Hebridean Isles Accommodation Ltd is a recently established micro company in the accommodation sector with a weak financial position characterized by negative net assets and net current liabilities. The absence of current assets and deteriorating equity indicate limited ability to service debt or absorb financial shocks. Credit facilities are not recommended without substantial evidence of improved trading or capital support.

HEBRIDEAN ISLES ACCOMMODATION LTD - Analysis Report

Company Number: SC718322

Analysis Date: 2025-07-29 15:16 UTC

1. Credit Opinion: DECLINE. Hebridean Isles Accommodation Ltd presents a weak credit profile. The company is a micro entity, recently incorporated (Dec 2021), with no employees and limited financial activity. The latest accounts show negative net assets and shareholders’ funds deteriorating from -£93 in 2022 to -£298 in 2023, indicating accumulated losses and poor financial health. Current liabilities exceed current assets, creating a net current liability position. There is no evidence of profitability or cash generation to service debt, and absence of audit or detailed P&L further limits financial transparency. The company’s ability to meet credit obligations or withstand adverse conditions is questionable.

2. Financial Strength: The balance sheet is weak and deteriorating. The company had current assets of £0 and current liabilities of £106 at 31 December 2023, resulting in net current liabilities of £-106. Net assets have declined to £-298 from £-93 the previous year. Accruals and deferred income increased slightly but do not offset the net liabilities. The negative equity position reflects accumulated losses and potentially inadequate capitalisation. With no fixed assets or employees reported, asset backing is minimal. Overall, financial strength is insufficient to support new lending or credit extension.

3. Cash Flow Assessment: Liquidity is very limited. The absence of current assets (cash or debtors) versus current liabilities means the company has no buffer to cover short-term obligations. The negative working capital position signals potential cash flow stress. The company’s filing does not provide cash flow statements, but the balance sheet suggests an inability to generate or retain cash internally. Given the micro scale of operations and no reported employees or turnover data, external cash injections or capital contributions are likely required to maintain solvency.

4. Monitoring Points:

• Monitor quarterly or interim trading performance to assess any improvement in profitability or cash generation.
• Watch for changes in net current assets and net liabilities to detect stabilization or further deterioration.
• Track director actions on capital injection or restructuring to improve equity.
• Observe timely filing of accounts and confirmation statements as an indicator of governance.
• Review any new borrowing or credit facilities that might impact liquidity risk.