HIVE OF ACTIVITY LIMITED

Executive Summary

Hive of Activity Limited displays a deteriorating financial position with significant negative equity and poor liquidity, raising serious doubts about its ability to service debt. The company’s worsening net liabilities and negative working capital suggest high credit risk. Without substantial operational improvement or capital support, extending credit is not advisable at this time.

HIVE OF ACTIVITY LIMITED - Analysis Report

Company Number: 12733441

Analysis Date: 2025-07-29 19:10 UTC

1. Credit Opinion: DECLINE
   Hive of Activity Limited exhibits a weak financial position with significant net liabilities that have deteriorated over three years, moving from -£8,206 in 2020 to -£44,081 in 2023. The company’s current liabilities substantially exceed current assets, indicating poor short-term liquidity and an inability to meet obligations as they fall due. The absence of profit and loss details limits visibility into operational performance, but the negative equity and worsening working capital suggest ongoing losses and financial distress. The single director, while stable, is insufficient to mitigate the risks posed by the company’s financial fragility. Given these factors, the company does not demonstrate capacity to service additional credit facilities without significant risk.

2. Financial Strength:
   The balance sheet shows a micro-entity with minimal fixed assets and current assets of £18,044 against current liabilities of £62,262 at the latest year-end, yielding net current liabilities of -£44,218. Shareholders’ funds are negative and worsening, reflecting accumulated losses eroding equity. The company’s solvency is weak, with total net liabilities of £44,081. This negative net asset position indicates the company’s liabilities exceed its assets, undermining its financial resilience and raising concerns over its ability to sustain business operations or withstand economic downturns.

3. Cash Flow Assessment:
   Current asset composition is not detailed to assess cash versus receivables or stock, but the significant gap between current assets and liabilities signals poor liquidity. The negative working capital position means the company likely struggles to maintain day-to-day operational cash flows. Without positive cash flow or access to additional funds, the company risks defaulting on short-term obligations. The absence of profit and loss data hinders a full cash flow analysis, but the worsening balance sheet metrics strongly imply strained liquidity management.

4. Monitoring Points:

• Monitor quarterly cash flow statements if available, focusing on liquidity trends and ability to meet short-term debts.
• Track changes in current liabilities and any new credit arrangements that might worsen leverage.
• Review any updates to profitability or operational improvements, as the lack of P&L data limits insight.
• Keep watch on director changes or any indications of restructuring or insolvency proceedings.
• Observe any filings indicating capital injections or shareholder support to improve equity.