HEBRIDEAN NATURE SOLUTIONS LTD

Executive Summary

HEBRIDEAN NATURE SOLUTIONS LTD shows a high risk profile driven primarily by a negative net asset position and severe liquidity mismatch. Despite compliance with filing requirements and clear ownership, the financials raise concerns about the realizability of fixed assets and the company’s ability to meet ongoing liabilities. Further due diligence on asset quality and liquidity is essential before considering any investment.

HEBRIDEAN NATURE SOLUTIONS LTD - Analysis Report

Company Number: SC789126

Analysis Date: 2025-07-20 13:31 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant solvency risk with current liabilities exceeding fixed assets and a negative net assets position. The micro-entity balance sheet shows total net liabilities of £18,394 despite holding fixed assets valued over £2.3 million, indicating potential overvaluation or encumbrance of those assets. The current liabilities are substantial at £2.35 million against minimal current assets and only one employee, suggesting potential liquidity and operational concerns.

2. Key Concerns:

• Negative Net Assets: The company’s net assets are negative (£-18,394), which signals insolvency risk and potential inability to cover all liabilities.
• High Current Liabilities Relative to Assets: Current liabilities of £2.35 million dwarf current assets of £4,113, raising significant liquidity concerns and possible cash flow problems.
• Asset Quality and Valuation: Fixed assets are reported at £2.33 million but net assets remain negative, implying these assets may be highly leveraged, impaired, or not readily realizable, which threatens operational stability.

3. Positive Indicators:

• No Overdue Filings or Compliance Issues: The company is up to date with both accounts and confirmation statement filings, reflecting good regulatory compliance.
• Ownership and Control Transparency: A single individual holds majority control (75-100% shares and voting rights), potentially enabling decisive governance and streamlined decision-making.
• Micro-entity Status: Micro classification implies limited scale which may reduce complexity and overhead costs.

4. Due Diligence Notes:

• Investigate the nature, ownership, and encumbrances on the fixed assets to clarify why net assets are negative despite high fixed asset values.
• Review detailed breakdown of current liabilities to assess timing, counterparties, and terms to evaluate liquidity risks more precisely.
• Assess the company’s cash flow projections and working capital management given the minimal current assets and one employee.
• Confirm that the asset valuations are accurate and whether any impairment or write-downs are anticipated.
• Understand the business model and revenue generation given the micro-entity status and limited operational scale to evaluate sustainability.