HGIT COVENTRY LIMITED

Executive Summary

HGIT Coventry Limited is a relatively new private limited company engaged in real estate management with strong tangible assets and profitable initial operations. However, its liquidity position is strained by significant current liabilities exceeding current assets, and high long-term debt relative to equity increases solvency risk. Continued monitoring of debt refinancing and updated financial performance is essential to fully assess the company’s financial stability and operational sustainability.

HGIT COVENTRY LIMITED - Analysis Report

Company Number: 13056621

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: MEDIUM

Justification: HGIT Coventry Limited shows significant fixed assets and profitable operations in its first financial period. However, the large current liabilities exceeding current assets, coupled with sizeable long-term debt, indicate liquidity and solvency pressures that warrant close monitoring.

2. Key Concerns:

• Negative net current assets of approximately £7 million suggest potential short-term liquidity constraints.
• Substantial non-current liabilities (£11.3 million) relative to net assets (~£945k) could indicate high leverage and refinancing risk, especially as the bank loan was due for repayment mid-2023.
• Limited financial history (only one accounting period available) restricts trend analysis and increases uncertainty about operational stability.

3. Positive Indicators:

• The company generated a strong operating profit (£1.4 million) and net profit after tax (£1.1 million) in the initial 13-month period.
• Significant tangible fixed assets (£18.9 million) primarily in land and buildings provide tangible collateral.
• No overdue filings or compliance issues reported, indicating good regulatory standing.

4. Due Diligence Notes:

• Verify the status and terms of the bank loan maturing July 2023, including any refinancing or restructuring agreements.
• Update financials beyond 2021 to assess recent operational performance and cash flows.
• Assess the nature of current liabilities, specifically trade creditors, and their impact on cash flow.
• Review related party transactions and intercompany loans if the company is part of a larger group (noting the PSC is a holding company).
• Examine director changes and their impact on corporate governance and strategic direction.