HELLIWELL AND COMPANY HOLDINGS LTD

Executive Summary

Helliwell and Company Holdings Ltd demonstrates a modest financial position with net assets of £10,462 but faces liquidity constraints due to significant net current liabilities dominated by intra-group debts. The company’s ability to meet short-term obligations independently is limited, although the repayment of director loans post year-end is positive. Credit approval is recommended with conditions focused on liquidity monitoring and ensuring continued group support.

HELLIWELL AND COMPANY HOLDINGS LTD - Analysis Report

Company Number: 12727136

Analysis Date: 2025-07-29 18:58 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Helliwell and Company Holdings Ltd is an active private limited company operating in real estate management. While the company shows positive net assets indicating some equity cushion, it has significant net current liabilities and reliance on intra-group funding. The low cash balance and current liabilities exceeding current assets by over £114k pose liquidity risks. The director loan repayment within nine months and consistent filing history are positive indicators, but the company’s ability to service new external debt or meet short-term obligations independently is limited. Approval is recommended with conditions such as close monitoring of liquidity, possible requirement for personal guarantees or additional collateral, and regular review of intra-group funding arrangements.

Financial Strength:
The company holds net assets of £10,462 as of 31 March 2024, down from £17,856 the prior year, reflecting a decline in equity. Fixed assets include a £125k investment in subsidiaries, supporting asset value, but current assets are only £18,528, mostly debtors. Current liabilities stand at £133,141, mostly amounts owed to group undertakings (£129,541), creating a large net current liability of £114,613. Share capital is nominal at £100, and the company retains accumulated losses in its profit and loss reserve, indicating modest financial buffer. The downward trend in net assets and persistent working capital deficits highlight a weak balance sheet.

Cash Flow Assessment:
Cash on hand is minimal at £25, indicating very limited readily available liquidity. Debtors have decreased sharply from over £53k to £18.5k, partly due to repayment of a director loan within nine months after year-end, suggesting some cash inflow post year-end. However, the company’s current liabilities remain very high relative to current assets, as liabilities include substantial intra-group borrowings which are likely short-term. The negative working capital position suggests the company may face challenges meeting immediate obligations without continued support from related parties or asset disposals. The lack of employees and reliance on director loans further emphasize limited internal cash generation capacity.

Monitoring Points:

• Liquidity position and cash flow trends, especially short-term cash availability
• Level and terms of amounts owed to group undertakings, including repayment schedules and whether these are being converted to longer-term debt
• Trends in net current liabilities and any efforts to reduce working capital deficits
• Director conduct and commitment to provide support if needed
• Timeliness of statutory filings and any changes in company status or ownership structure
• Profitability and cash generation of subsidiaries, given the significant investment held