HIDEAWAY HOME AND KITCHEN LIMITED

Executive Summary

Hideaway Home and Kitchen Limited demonstrates material solvency and liquidity risks with negative net assets and working capital deficits persisting over two years. However, the company maintains good compliance with filing requirements and has stable directorship. Further investigation into detailed financial performance and cash flows is necessary to assess operational sustainability and recovery prospects.

HIDEAWAY HOME AND KITCHEN LIMITED - Analysis Report

Company Number: 13008068

Analysis Date: 2025-07-20 18:24 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, as evidenced by persistent negative net current assets and shareholders' funds, indicating an inability to meet short-term obligations from current assets.

2. Key Concerns:

• Negative Net Current Assets and Net Liabilities: Both 2022 and 2023 financial years show net current liabilities of £130 and net assets of -£130, signaling ongoing working capital deficits and overall negative equity.
• Minimal Asset Base and Capitalization: Current assets are limited to £100 (debtors), with share capital of only £100, which is minimal and insufficient for operational resilience.
• Lack of Profit Retention: A profit and loss reserve deficit of £230 suggests accumulated losses without evidence of recovery or profitability improvements.

3. Positive Indicators:

• Timely Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Stable Management Team: Directors have been in position since incorporation with clear control and operational roles, suggesting stable leadership.
• Small Company Filing Exemption Used Appropriately: The company complies with small company reporting exemptions, reducing administrative burden.

4. Due Diligence Notes:

• Review Detailed Profit and Loss Information: As the profit and loss account is not filed with Companies House, obtaining it is essential to assess profitability trends and cash flows.
• Examine Cash Flow Statements: Determine whether the company is generating operating cash flow or relying on external financing.
• Assess Business Model Viability: Investigate the underlying business activities and revenue generation given the SIC code "Other service activities not elsewhere classified" and limited financial data.
• Confirm Directors’ Plans for Capital Injection or Restructuring: Understand if the directors have plans to address the negative net assets and ensure operational sustainability.