Company Number: 14193899

Analysis Date: 2025-07-29 15:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Hillbark Management Services Ltd is a very recently incorporated real estate investment company with limited operating history and a small equity base (£2 share capital). Its fixed assets are investment properties valued at £240k, but the company has negative net assets (£-2,096) due to substantial long-term liabilities (£243,485). The company’s directors have confirmed ongoing support, which is critical given the negative equity and limited liquidity. Credit approval should be conditional on continued director support and monitoring liquidity closely, as the current ability to service debt from cash and working capital is weak.

2. Financial Strength:
   The balance sheet shows a high leverage position: fixed assets of £240,107 are financed almost entirely by long-term loans (£243,485) and a minor amount of current liabilities (£980). The company’s net assets remain negative, though improved slightly from previous years. The investment property is carried at fair value with no depreciation, and there has been no change in valuation year over year. Shareholders’ funds are minimal and negative, indicating that equity capital is not supporting the asset base, increasing financial risk.

3. Cash Flow Assessment:
   Current assets are limited to cash (£2,262), with very modest net current assets (£1,282) after accounting for current liabilities (£980). The company holds no stock or receivables, and no employees, indicating minimal operational expenses but also limited cash inflow sources aside from rental income. Liquidity is tight, and the company is reliant on director loans and external financing for ongoing cash needs. The directors’ statement on going concern citing their support is key to mitigating liquidity risk.

4. Monitoring Points:

• Regular review of rental income and cash flow adequacy to service interest and loan repayments.
• Watch for any changes in investment property valuation or impairment risks.
• Monitor director loan accounts, ensuring they remain supportive and are not withdrawn unexpectedly.
• Review future filings for any increase in current liabilities or overdue payments.
• Confirm ongoing compliance with filing deadlines and absence of adverse director conduct or legal issues.