HG & C DEVELOPMENTS LIMITED

Executive Summary

HG & C DEVELOPMENTS LIMITED presents a high-risk profile due to its negligible net assets and tight liquidity position, with financial statements showing minimal equity and near-zero net current assets. While regulatory compliance is maintained, the unusual scale of debtors and creditors and the absence of profitability information warrant further investigation to validate financial stability and operational sustainability.

HG & C DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13584642

Analysis Date: 2025-07-29 19:38 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its extremely minimal net assets, very tight working capital, and the absence of significant equity or reserves. The financial data reveals persistent near-zero shareholder funds and negligible net current assets, indicating potential solvency concerns.

2. Key Concerns:

• Minimal Net Assets and Equity: Shareholders’ funds remain at £2 across all reported years, suggesting the company is essentially operating with no tangible equity buffer. This severely limits the company’s ability to absorb losses or secure financing.
• Tight Liquidity Position: Current assets barely exceed current liabilities (£2,402 vs £2,400 in 2024), and cash balances are very low (£383), indicating limited liquidity to meet short-term obligations without relying on debtor collections.
• Unusual Debtor and Creditor Balances: The 2023 and 2022 figures show unusually large debtors and creditors (circa £1.86m and £1.87m), which effectively net out to minimal net current assets. This pattern may reflect related party transactions or intra-group balances that require further scrutiny to assess true financial health.

3. Positive Indicators:

• Up-to-date Filing and Compliance: The company is active and has no overdue filings for accounts or confirmation statements, which indicates compliance with regulatory requirements.
• Small Staff Headcount: Only two employees (including directors), suggesting a lean cost base, which may help control overheads.
• No Indication of Insolvency Proceedings: The company is not in liquidation, administration, or receivership, implying no formal insolvency process is underway.

4. Due Diligence Notes:

• Investigate the nature of the large debtor and creditor balances reported in prior years, including whether these represent related party transactions or loans.
• Clarify the company's revenue streams and profitability, as the absence of a profit and loss statement limits assessment of operational sustainability.
• Review cash flow statements or bank statements to evaluate actual liquidity and ability to meet liabilities as they fall due.
• Assess the director’s background and any potential related party relationships that may influence the company’s financial position.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.