HILBRE HOLIDAY LETS LIMITED

Executive Summary

Hilbre Holiday Lets Limited exhibits weak financial health marked by significant negative working capital and negligible equity. The company’s liquidity position is inadequate to meet obligations without external support, and it shows no signs of growth or operational scale. Credit facilities are not recommended currently due to high default risk and governance concerns.

HILBRE HOLIDAY LETS LIMITED - Analysis Report

Company Number: 13246214

Analysis Date: 2025-07-20 13:41 UTC

1. Credit Opinion: DECLINE
   Hilbre Holiday Lets Limited presents significant credit risk. The company shows net current liabilities of £61,064 consistently over the past three years, indicating poor liquidity. Current liabilities exceed current assets materially, signaling inability to meet short-term obligations without additional financing. The minimal net assets (£293) and reliance on shareholder funds comprising only £100 share capital and a small retained profit suggest weak financial foundation. The absence of revenue or debtor figures and no employees further raises concerns about operational scale and cash generation. The company has overdue accounts filings, which may reflect governance or financial management issues. Overall, the company lacks sufficient working capital and financial resilience to support new credit facilities.

2. Financial Strength:
   The balance sheet is dominated by investment property valued at £57,100 and tangible fixed assets of £4,257, but these are largely offset by creditors of £66,609 due within one year. The net asset base is negligible at £293, composed mainly of a small profit and the nominal share capital. There is no indication of long-term debt, but the significant short-term liabilities, particularly amounts owed to related parties (£64,142), suggest dependency on shareholder or group funding rather than external creditworthiness. The company’s financial position remains stagnant with no growth in assets or equity over three years.

3. Cash Flow Assessment:
   Cash reserves stand at £5,545, insufficient to cover current liabilities of £66,609, indicating a strained liquidity position. Negative net current assets of £61,064 imply poor working capital management and a risk of default on short-term debts. There is no evidence of trade debtors or revenue streams to replenish cash. The company’s ability to generate positive operating cash flow is questionable, and reliance on intercompany funding or further capital injections appears necessary to maintain operations.

4. Monitoring Points:

• Timely filing of overdue accounts and confirmation statements to ensure regulatory compliance.
• Changes in current liabilities and cash balances to assess improvements or further deterioration in liquidity.
• Development of revenue streams and working capital improvements to support debt servicing.
• Related party transactions scrutiny, particularly amounts owed to group undertakings, to evaluate financial sustainability and potential risk transfer.
• Any changes in ownership or management that might affect strategic direction or financial governance.