Company Number: 14722560

Analysis Date: 2025-07-20 14:50 UTC

1. Credit Opinion: DECLINE
   HIWAD123 LTD shows a weak financial position with net liabilities of £11,854 as at 31 March 2024. The company’s current liabilities (£36,223) substantially exceed its current assets (£1,869), resulting in a negative working capital position of £34,354. This indicates cash flow stress and limited ability to meet short-term obligations. Given the company is newly incorporated (2023) and classified as micro, the lack of profitability or equity buffer raises concerns about its ability to service debt or credit facilities safely at this stage.

2. Financial Strength:
   The balance sheet reveals negative net assets and shareholders' funds of -£11,854, reflecting accumulated losses or initial funding shortfalls. Fixed assets amount to £22,500 but are overshadowed by significant current liabilities. The absence of positive working capital and equity signals poor financial resilience. The company operates with only 3 employees and is in the take-away food sector, which can be competitive and sensitive to economic conditions. The sole director and 100% shareholder is young (born 2004), which may imply limited business or financial management experience.

3. Cash Flow Assessment:
   Current assets are minimal (£1,869), mostly likely cash and debtors, which are insufficient to cover current liabilities due within one year (£36,223). This large mismatch suggests potential liquidity issues and a risk of insolvency if cash inflows do not improve. Negative net current assets of £34,354 indicate reliance on external financing or delayed payments to suppliers. No income statement data is provided, but the balance sheet position implies operating losses in the first year.

4. Monitoring Points:

• Improvement in working capital and liquidity ratios in the next accounting period.
• Profitability trends and cash generation ability to reverse negative equity.
• Management’s ability to secure additional capital or reduce liabilities.
• Timely filing of accounts and confirmation statements maintaining regulatory compliance.
• Any changes in ownership or director appointments that might affect governance and financial oversight.