HENDERSON CONTRACTS SCOT LTD

Executive Summary

Henderson Contracts Scot Ltd is a very young company with a weak financial position, exhibiting negative net assets and no working capital buffer. The absence of turnover and limited operating history increase credit risk substantially. Consequently, credit approval is declined until material financial improvements and operational evidence emerge.

HENDERSON CONTRACTS SCOT LTD - Analysis Report

Company Number: SC752548

Analysis Date: 2025-07-29 12:51 UTC

1. Credit Opinion: DECLINE
   Henderson Contracts Scot Ltd is a newly incorporated private limited company (incorporated December 2022) operating in the construction sector. The latest accounts for the year ending December 2023 show significant financial weakness with net current liabilities of £256 and negative shareholders’ funds of £256. This indicates the company currently has no net asset base and is technically insolvent on a balance sheet basis. There is also no evidence of turnover or profits provided, and the small scale with only one employee suggests the business is in its infancy with limited operating history. Without positive working capital or equity, the company’s ability to service debt or meet commercial obligations is highly uncertain. Given the absence of audited accounts and the negative net asset position, extending credit facilities would be high risk.

2. Financial Strength:
   The balance sheet reflects minimal activity with total current liabilities of just £256 and net current liabilities of the same amount, indicating no current assets to cover short-term obligations. The company holds no fixed assets and retains a negative retained earnings reserve. The company’s financial structure is extremely weak with no buffer to absorb losses or external shocks. The absence of any reported turnover or profit figures further undermines financial strength assessment. The directors have prepared accounts under small companies’ provisions, limiting disclosure and audit requirements, but this also reduces transparency.

3. Cash Flow Assessment:
   No cash or current assets are reported, implying very limited liquidity. Negative net current assets mean the company does not have sufficient short-term resources to meet liabilities as they fall due. With only one employee and a very recent incorporation date, operating cash flow is likely minimal or negative. The lack of detailed income or cash flow statements restricts assessment but the balance sheet position clearly flags liquidity risk. Without cash reserves or working capital, the company would struggle to manage day-to-day expenses or debt service.

4. Monitoring Points:

• Future filed accounts to track improvements in net assets and current asset levels.
• Turnover and profitability trends once reported, to assess revenue generation and margin sustainability.
• Liquidity ratios, including current ratio and quick ratio, to monitor short-term financial health.
• Director changes or new capital injections that might strengthen equity base.
• Payment history on any credit extended to evaluate operational discipline.