HINTON DESIGN AND BUILD HOLDINGS LIMITED

Executive Summary

Hinton Design and Build Holdings Limited is financially stable on a capital basis due to substantial fixed asset investments but exhibits weak liquidity with negative net current assets and minimal cash. Approval is conditional on satisfactory explanation of intercompany balances and assurance of group support for working capital needs. Continued close monitoring of liquidity and cash flows is essential.

HINTON DESIGN AND BUILD HOLDINGS LIMITED - Analysis Report

Company Number: 13224646

Analysis Date: 2025-07-29 14:26 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Hinton Design and Build Holdings Limited is a small private limited company primarily holding investments in subsidiaries. The company shows strong net asset backing (£1.97m) due to fixed asset investments but exhibits significant current asset deficits and negative net working capital (£-180k). The negative debtors balance (£-£180k) suggests intercompany balances or accounting anomalies which need clarification. The company’s ability to service short-term liabilities is weak due to low cash (£999) and current liabilities (£1,320) being higher than current assets. Approval is recommended if the applicant can demonstrate cash flow support from group entities or parent company guarantees, given the investment nature and limited trading liquidity.

2. Financial Strength:
   The company holds substantial fixed asset investments (£2.15m) which form the bulk of total assets. Shareholders’ funds have remained stable around £1.97m to £1.98m over three years, indicating no erosion of capital. However, the consistent negative net current assets position (working capital deficit of £180k in 2024) and negative debtors indicate financial tightness in the short term. The capital structure is equity-based with minimal share capital (£428), and no bank borrowings are disclosed. Overall, the balance sheet is asset-rich but liquidity-poor.

3. Cash Flow Assessment:
   Cash at bank is nominal (£999), insufficient to cover current liabilities (£1,320). Debtors show an unusual negative balance (£-180,630), likely intercompany receivable/payable offsets which require confirmation. The company’s cash flow from operations is not disclosed, but the negative working capital and minimal cash suggest limited internal liquidity or operational cash generation. Reliance on group funding or capital injections is probable. Without clear cash flow visibility or external funding lines, short-term liquidity risk is elevated.

4. Monitoring Points:

• Clarify nature and collectability of negative debtors balance and intercompany balances.
• Monitor cash flow statements and operational cash generation in future filings.
• Watch for any changes in current liabilities and liquidity ratios.
• Confirm ongoing support from parent or group companies to cover working capital deficits.
• Review any changes in investment asset valuations or impairments.