Company Number: SC718768

Analysis Date: 2025-07-20 12:48 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Hexotherm Ltd is an active micro private limited company incorporated in 2022 within the manufacturing sector (central heating radiators and boilers). The company shows a positive but minimal net asset position (£726) and positive working capital, indicating it currently meets short-term obligations. However, as a very young company with limited financial history, very low asset base, and a single employee, the credit exposure should be limited and closely monitored. Approval is conditional on maintaining or improving liquidity and trading performance.

2. Financial Strength:
   The balance sheet as of 31 January 2024 reports current assets of approximately £6,883 against current liabilities of £6,157, resulting in net current assets (working capital) of £726. Net assets are also £726, reflecting a thin equity base. There are no fixed assets reported, indicating an asset-light structure. The increase in net assets from £1 at incorporation to £726 shows marginal growth but overall financial strength remains weak due to the company's size and infancy.

3. Cash Flow Assessment:
   The positive but modest working capital suggests the company has limited cash buffer to absorb unexpected expenses or delays in receivables. With only one employee and no significant fixed assets, operating expenses are likely minimal, but the company’s ability to generate consistent positive cash flow is uncertain given the absence of detailed profit and loss data. Monitoring liquidity closely is essential to ensure ongoing operational viability.

4. Monitoring Points:

• Maintain or improve net current assets to preserve liquidity.
• Monitor timely filing of accounts and confirmation statements to avoid regulatory penalties or compliance risks.
• Track revenue growth and profitability trends as they emerge to assess the company’s ability to service debt.
• Watch for changes in director or ownership structure that could affect governance or control.
• Ensure ongoing adherence to industry regulations and market conditions impacting manufacturing demand.