HIGHWAY 358 C.I.C.

Executive Summary

HIGHWAY 358 C.I.C. is currently in a financially vulnerable position with sustained losses, negative net assets, and poor liquidity. The company's cash flow situation and shrinking turnover raise significant concerns about its ability to meet debt and operational obligations. Based on the current financials, credit facilities would not be recommended without substantial improvement or external financial backing.

HIGHWAY 358 C.I.C. - Analysis Report

Company Number: 12713779

Analysis Date: 2025-07-29 20:19 UTC

1. Credit Opinion: DECLINE
   HIGHWAY 358 C.I.C. exhibits a weak financial position with consistent operating losses over the last three years and a deteriorating net asset base, now significantly negative at -£8,241. The entity has a negative working capital position with current liabilities substantially exceeding current assets, indicating poor short-term liquidity. The company's turnover is minimal and declining, which undermines its ability to generate sufficient cash inflows to meet obligations. Given these factors and no indication of external financial support or capital injections, the risk of default on credit facilities is high.

2. Financial Strength:
   The balance sheet shows a steadily worsening financial position from a positive net asset value of £2,703 in 2020 to a negative net asset position of -£8,241 in 2024. Current liabilities remain constant at £9,327 while cash reserves have diminished from £12,663 in 2020 to £1,086 in 2024. Negative shareholders’ funds and net current liabilities indicate insolvency on a going concern basis. The company’s classification as a private company limited by guarantee with no share capital limits its ability to raise equity capital. Overall, the financial strength is very weak and deteriorating.

3. Cash Flow Assessment:
   The cash position has declined significantly over the last four years from £12,663 to £1,086, reflecting negative operating cash flows consistent with the losses reported. The working capital deficit of £8,241 indicates the company lacks sufficient liquid assets to cover its short-term liabilities. No evidence of receivables or other current assets besides cash is shown, suggesting limited liquidity sources. The company’s low turnover and ongoing administrative expenses exacerbate cash flow pressures, raising concerns about its ability to meet current and upcoming financial obligations.

4. Monitoring Points:

• Monitor cash balances and turnover trends closely to assess any improvement or further deterioration in liquidity.
• Watch for increases in current liabilities or any overdue payments to suppliers or creditors.
• Review management actions to reduce operating losses and improve revenue generation.
• Track any changes in the company’s funding structure, including grants, donations, or other financial support.
• Confirm timely filing of accounts and confirmation statements to ensure regulatory compliance.