HLV PROJECTS LTD

Executive Summary

HLV Projects Ltd has shown a positive shift from negative to positive net assets, reducing immediate solvency concerns. However, liquidity remains tight with limited working capital buffers and an absence of profit and loss disclosures hinders full operational assessment. Timely filings and a stable workforce support operational continuity, but ownership and governance complexities warrant further investigation to confirm stability and risk exposure.

HLV PROJECTS LTD - Analysis Report

Company Number: 13265388

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: MEDIUM
   HLV Projects Ltd shows recent improvement in net assets from a negative £44,760 to a positive £50,779 in the latest year, indicating some recovery in solvency. However, the company remains micro-sized with modest capital and relatively high current liabilities, which suggests vulnerability to liquidity stress. The absence of detailed profit and loss data limits full operational assessment.

2. Key Concerns:

• Liquidity Position: Current liabilities remain high (£339,601) relative to current assets (£390,280), leaving a narrow net current asset buffer (£50,679). This tight working capital position could pose cash flow risks if receivables are delayed or expenses increase.
• Profitability and Earnings Visibility: The directors have elected not to file a profit and loss account, resulting in no insight into revenue, margins, or cash generation quality. This opacity increases uncertainty about earnings sustainability.
• Ownership and Control Complexity: Significant control is fragmented among multiple parties, including a corporate shareholder (Lydwell Developments Ltd) which recently resigned as director, and individuals with overlapping shareholdings. Changes in control structure may affect governance stability.

3. Positive Indicators:

• Recent Solvency Improvement: The company moved from negative net assets to positive in the latest financial year, indicating improved financial health.
• No Overdue Filings: Accounts and confirmation statements are filed on time, reflecting good compliance and governance practices.
• Stable Employee Base: The company maintains a small but stable team of four employees, suggesting operational continuity.

4. Due Diligence Notes:

• Obtain and review the underlying profit and loss data or management accounts to assess revenue streams, profitability, and cash flow trends.
• Clarify the nature and terms of current liabilities, especially any related-party or short-term borrowings that could impact liquidity.
• Investigate recent changes in directors and shareholders to understand implications for control, decision-making, and strategic direction.
• Confirm that no director disqualifications or regulatory issues exist, given multiple recent appointments and resignations.