Company Number: 13180368

Analysis Date: 2025-07-20 18:38 UTC

1. Credit Opinion: APPROVE
   Hodgkiss Developments Ltd demonstrates a stable financial position with a positive net asset base and strong net current assets. The company, active since 2021, operates in the domestic building construction and development sector, which can be cyclical but generally has steady demand. There is no indication of overdue filings or director misconduct. Given its solid working capital and absence of debt default, the company is considered capable of servicing credit facilities. Approval is recommended with standard monitoring due to the micro-entity status and limited trading history.

2. Financial Strength:
   The balance sheet as of 28 February 2024 shows net assets of £158,750, up from £105,500 the previous year, indicating growth in retained equity. Fixed assets are modest at £17,810 but represent an increase from zero, which may signify investment in operational capacity. The company has no long-term liabilities reported and current liabilities are well covered by current assets, resulting in a strong net current asset (working capital) position of £140,940. Shareholders' funds fully support the asset base, reflecting a sound equity foundation for a micro-entity.

3. Cash Flow Assessment:
   Current assets of £159,228 versus current liabilities of £18,288 imply good liquidity and working capital sufficiency to meet short-term obligations. Although detailed cash flow statements are not provided, the large positive net current assets and absence of employees (hence low overhead) suggest limited cash burn and stable operational cash flows. The company’s ability to meet creditor payments in the near term appears strong.

4. Monitoring Points:

• Monitor future trading results for sustained profitability and growth beyond micro-entity scale.
• Watch for any increases in current liabilities or changes in liquidity that could pressure working capital.
• Keep track of sector risks affecting construction demand and material costs.
• Review director conduct or changes in management that could affect financial stewardship.
• Confirm timely filing of future accounts and confirmation statements to avoid compliance issues.