Company Number: 15220288

Analysis Date: 2025-07-29 13:22 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   HOCKLEY & HAYNES LTD is a newly incorporated micro-entity operating in non-specialised wholesale of food, beverages, and tobacco as well as other unspecified service activities. The company shows a modest asset base and positive net assets, indicating initial financial stability. However, net current assets are negative (£5,156), signaling potential short-term liquidity constraints. Given the company’s infancy (incorporated in October 2023) and limited trading history, credit approval should be conditional upon continued monitoring of cash flow and working capital improvements. The directors’ control and ownership structure appear stable with no red flags.

2. Financial Strength:
   The balance sheet as at 31 October 2024 shows:

• Fixed Assets: £23,200
• Current Assets: £52,590
• Current Liabilities: £57,746
• Net Current Assets (Working Capital): -£5,156
• Net Assets (Shareholders’ Funds): £17,094

The company’s net assets are positive but lean, reflecting a typical micro-entity profile. The negative working capital position suggests the company may rely on short-term borrowing or trade credit to meet obligations. The low level of fixed assets indicates limited capital investment so far, consistent with early stage operations.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by £5,156, indicating tight liquidity. The company employs only one person, minimizing wage outgoings, but working capital management will be critical to avoid cash flow strain. Lack of detailed cash flow statements restricts deeper analysis, but the negative net working capital calls for caution in extending credit without assurances of timely receivables collection and manageable payables.

4. Monitoring Points:

• Quarterly review of cash flow and working capital to ensure improvement in liquidity
• Timely filing of next accounts and confirmation statements to maintain compliance
• Monitoring of receivables aging and supplier payment terms to prevent liquidity crunch
• Watch for any increase in short-term borrowings or overdraft utilization that may stress cash flow
• Assessment of business growth and profitability as trading history extends beyond first year