HIGH WEST HOMES LIMITED

Executive Summary

High West Homes Limited shows improved liquidity and a positive working capital position after a prior year deficit, but remains a very small company with limited equity and operational scale. Credit approval is conditional on strict limits and ongoing financial monitoring due to size and cash flow sensitivity. Close attention to liquidity trends and compliance is recommended to mitigate risk.

HIGH WEST HOMES LIMITED - Analysis Report

Company Number: 13183109

Analysis Date: 2025-07-29 14:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   High West Homes Limited is a young private limited company operating in the real estate trading sector. The company’s latest financials show a reversal from net current liabilities of £230,992 in 2023 to net current assets of £37,493 in 2024, indicating an improvement in short-term liquidity and working capital management. However, the absolute net asset value remains modest at £37,493, reflecting a small equity base and limited financial buffer. Given the company’s size, micro-entity reporting, and limited operating history, the credit risk is elevated but manageable with conditions—such as limits on facility size and regular financial monitoring.

2. Financial Strength:
   The balance sheet shows current assets of approximately £337k against current liabilities of £299k, providing positive working capital of £37k. The net assets improved from a negative position of £230k the prior year to positive £37k, suggesting recent efforts to reduce liabilities or improve asset quality. However, the scale remains small, and the company’s capital is limited (£100 share capital). The micro-entity accounts imply minimal fixed assets or long-term investments, which restricts collateral availability. The company has only one employee (the director), indicating a lean structure but also limited operational capacity.

3. Cash Flow Assessment:
   While detailed cash flow statements are not provided, the transition from net current liabilities to net current assets suggests better short-term liquidity and ability to meet obligations due within 12 months. The closeness of current liabilities to current assets requires ongoing vigilance to ensure continued liquidity. The working capital position is positive but tight, so unexpected cash demands or delays in receivables could strain cash flow. The director’s significant control (75-100%) may provide operational agility, but concentration risk exists.

4. Monitoring Points:

• Track quarterly or biannual management accounts to verify liquidity remains positive and working capital stable or improving.
• Monitor any increases in current liabilities that might erode net current assets.
• Watch for changes in asset composition, particularly any increase in fixed assets or borrowings.
• Review director conduct and company filings for timely compliance and absence of adverse governance issues.
• Observe revenue and profitability trends once available to assess operational sustainability.