HJW HOMES LTD

Executive Summary

HJW HOMES LTD is a very new micro-entity with a weak financial position indicated by negative net assets and limited liquidity. The absence of operating performance data and reliance on non-current liabilities present a high credit risk, leading to a decline recommendation for credit facilities at this stage. Close monitoring of future financial disclosures and operational progress is essential before reconsidering credit support.

HJW HOMES LTD - Analysis Report

Company Number: 15248135

Analysis Date: 2025-07-29 12:09 UTC

1. Credit Opinion:
   DECLINE
   HJW HOMES LTD is a newly incorporated company (October 2023) with only one full set of financials to date. The accounts show a net liability position of £9,914, driven by non-current liabilities (£23,023) exceeding total assets (£13,109). The company’s negative equity and very limited fixed asset base (£7,537) indicate a weak financial foundation. Lack of profitability and insufficient retained earnings further undermine its ability to service debt. The short trading history and absence of profit and loss data restrict visibility on operational performance and cash generation. Given these factors, the company poses a high credit risk.

2. Financial Strength:
   The balance sheet reveals minimal fixed assets and modest current assets (£5,686), primarily cash and debtors. Current liabilities are negligible (£114), resulting in positive net current assets (£5,572). However, the significant non-current liabilities create an overall net liability position. Shareholder funds are negative (£-9,914), reflecting accumulated losses or initial capital injection shortfall. The company is classified as a micro-entity with limited financial history, indicating it is in a start-up phase and not yet financially stable.

3. Cash Flow Assessment:
   Cash and cash equivalents at £3,113 suggest limited liquidity. The net current assets position implies working capital is positive but modest. There is no detailed cash flow statement or profit and loss account available to assess operating cash generation or financing cash flows. The company’s ability to meet short-term obligations appears adequate currently but depends heavily on continued capital support or revenue growth due to overall negative equity and outstanding non-current liabilities.

4. Monitoring Points:

• Monitor subsequent filing of profit and loss accounts and cash flow statements for signs of revenue generation and profitability.
• Watch changes in net assets and shareholder funds to assess improvement or deterioration in financial health.
• Track any increases in current liabilities or overdue payments which could indicate liquidity stress.
• Review director and shareholder capital injections or external financing that impact solvency.
• Assess the company’s operational progress given its real estate letting SIC code and potential market risks.