Company Number: 13788626

Analysis Date: 2025-07-20 13:09 UTC

1. Risk Rating: HIGH
   HESTIA HOUSE LIMITED presents a high risk profile primarily due to persistent net liabilities, negative working capital, and reliance on director assurances to remain a going concern. The company’s financial statements show net liabilities and net current liabilities over consecutive years, indicating a weak solvency position.

2. Key Concerns:

• Negative Net Assets & Working Capital Deficit: The company has net liabilities of approximately £2,400 as of 31 December 2023, with net current liabilities around £2,480, suggesting it owes more than it owns short-term and overall.
• Dormant Status Despite Material Balances: The company is classified as dormant but reports significant debtor and creditor balances (circa £2.2 million each), which raises questions about the nature of these amounts and whether the dormant classification is appropriate.
• Going Concern Reliance on Director Funding: The director has provided written assurance to fund obligations and not to demand repayment until the company’s financial position improves. This reliance on related party support points to ongoing liquidity and solvency concerns.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with filing deadlines for both accounts and confirmation statements, suggesting sound regulatory compliance.
• Single Director with Full Control: The company has a single director and PSC who controls 75-100% of shares and voting rights, potentially allowing swift decision-making and flexibility in management.
• Minimal Fixed Assets: The company holds minimal fixed assets (£80), which may reduce risks related to asset impairment or depreciation.

4. Due Diligence Notes:

• Investigate the nature of the significant debtor and creditor balances, especially amounts owed by group undertakings and other creditors, to understand if these are intercompany loans or other related party transactions.
• Clarify the basis for dormant classification given the transactional balances and whether the company is indeed inactive operationally.
• Review any director funding arrangements or agreements that underpin the going concern statement, including potential personal guarantees or commitments that may affect risk exposure.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Confirm whether the company has any operational activity or revenue streams, given the dormant status, to evaluate operational sustainability.