Company Number: 12759972

Analysis Date: 2025-07-29 18:50 UTC

1. Credit Opinion: DECLINE. Hodson Norfolk Ltd exhibits a severely weakened financial position with substantial and growing negative shareholder funds and net assets, indicating accumulated losses and potential insolvency risk. The company’s current liabilities vastly exceed its current assets, resulting in a significant working capital deficit and poor liquidity. The business, operating in the unlicensed restaurants and cafes sector, is likely under financial stress and unable to comfortably meet short-term obligations or service additional credit without material risk.

2. Financial Strength: The company’s balance sheet as of 31 July 2024 shows total fixed assets of only £1,330 against current liabilities of £21,993 and long-term creditors of £75,920. Shareholders’ funds are negative £92,841, worsening from the previous year’s negative £85,751. Negative net assets and a persistent working capital deficit of approximately £17,852 (current assets £4,141 less current liabilities £21,993) indicate erosion of capital and inability to cover liabilities with available resources. The trend over five years shows increasing losses and deteriorating equity.

3. Cash Flow Assessment: There is no explicit cash figure for 2024, but current assets of £4,141 suggest minimal liquidity. The significant increase in creditors falling due after one year (from £64,226 to £75,920) may imply reliance on extended credit terms or deferred payments to manage cash flow, which is a concern. The company’s negative working capital and insufficient current assets relative to liabilities indicate tight or negative operating cash flows and poor short-term liquidity management.

4. Monitoring Points:

• Monitor any improvement or worsening in net current assets and shareholders’ funds in future filings.
• Watch for trends in creditor repayments and potential creditor pressures or defaults.
• Track cash flow statements (if available) for positive operating cash generation.
• Observe any changes in director involvement or capital injections that might stabilize finances.
• Watch for overdue filings or any signs of insolvency proceedings.