HILL BILLY LIMITED
Company number 03346775 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: HILL BILLY LIMITED
1. Credit Opinion: DECLINE
Rationale: Hill Billy Limited is a dormant shell company with no trading activity, no revenue generation, and negative net worth of £608,000. The company has been dormant for at least seven consecutive years with static financials and minimal cash reserves of £2,000. As a standalone credit proposition, this entity has zero capacity to service any debt obligation. The only path to credit approval would be with a full parent company guarantee from PowaKaddy International Limited, which holds controlling interest (75%+ shares and voting rights).
2. Financial Strength: Critical Weakness
| Metric | Value | Assessment |
|---|---|---|
| Shareholders' Funds | (£608,000) | Deeply insolvent |
| Share Capital | £600,000 | Fully offset by accumulated losses |
| Share Premium | £10,000 | Immaterial |
| P&L Reserve | (£608,000) | Historical losses unrecovered |
| Cash at Bank | £2,000 | Nominal balance only |
The balance sheet is technically insolvent with negative equity of £608,000. The entire share capital and premium have been eroded by accumulated losses. There are no tangible assets beyond the £2,000 cash balance. The company has no fixed assets, no debtors, no stock – it is an empty shell.
The financial position has remained completely static since at least 2018, confirming no operational activity whatsoever.
3. Cash Flow Assessment: Non-Existent
Liquidity Position: The £2,000 cash balance is the only asset. There are no current liabilities shown, meaning the company has no trade creditors, no short-term debt obligations, and no operational working capital requirements – consistent with dormant status.
Working Capital: Not applicable – there is no trading activity requiring working capital management.
Revenue Generation: Zero income across all reported years. The company has no turnover, no cost of sales, and no operating expenses.
Debt Service Capacity: Nil. The company cannot service any debt from its own resources.
4. Monitoring Points
If credit were extended with a parent company guarantee, the following would require ongoing monitoring:
- Parent Company Financial Health: PowaKaddy International Limited's financial position becomes the primary credit risk – their accounts should be reviewed
- Guarantee Enforceability: Any parent company guarantee must be properly executed and legally enforceable
- Purpose of Facility: Scrutinise why a dormant entity requires credit – potential red flag for unrelated purposes
- Reactivation Risk: Monitor for any resumption of trading activity, which could alter the risk profile
- Filing Compliance: Currently satisfactory – accounts filed to 31 December 2025, confirmation statement up to date
- Director Disqualification Records: No adverse records found for current directors John Coleman Degraft-Johnson and David Ian Catford
Additional Observations
- The company's SIC code (47640 – Retail sale of sports goods) suggests it previously operated as a retail business before becoming dormant
- PowaKaddy International Limited is a well-known golf equipment manufacturer, suggesting Hill Billy may have been acquired for its brand/IP and subsequently mothballed
- The two employees reported are likely the directors maintaining the dormant company's legal existence
- No description of principal activity was provided in the accounts, consistent with dormant status