HOLBECK RISE DEVELOPMENT LTD

Executive Summary

HOLBECK RISE DEVELOPMENT LTD currently exists in a dormant, pre-operational state with minimal financial resources and no trading activity. While financially stable in its inactivity, the company must initiate operations and secure capital to improve its financial health. With proper activation and financial management, the company has potential for growth in its development projects.

HOLBECK RISE DEVELOPMENT LTD - Analysis Report

Company Number: 13971937

Analysis Date: 2025-07-29 19:36 UTC

Financial Health Score: D

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Key Vital Signs

Metric	Value (£)	Interpretation
Net Assets	100	Extremely low asset base indicates minimal financial resources.
Shareholders' Funds	100	Equal to net assets, showing no retained earnings or accumulated profits.
Account Category	Dormant	No trading activity during the financial year, indicating no operational revenue or expenses.
Company Status	Active	Company is legally active but not trading.
Control Concentration	75-100%	Single individual holds full control, which can be a governance risk if unchecked.
Industry Classification	Development of building projects (SIC 41100)	Sector typically capital intensive, but no activity yet recorded.

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Symptoms Analysis

• Dormant Status: The company has not engaged in any financial transactions during the year, evidenced by the "Dormant" account category and flat net assets. This is a symptom of business inactivity or a start-up phase with no trading yet.
• Minimal Equity Base: Share capital and net assets stand at £100 only, which is the nominal share capital. This suggests no capital injection beyond initial formation, no retained earnings, and no asset accumulation.
• Lack of Financial Activity: Absence of current assets, liabilities, fixed assets, revenues, or expenses indicates no operations or investment, typical for a company that may be in a pre-trading phase or holding vehicle.
• Single Director and Shareholder: The company is fully controlled by one director who is also the sole shareholder, concentrating decision-making authority. While this is common in small private companies, it raises potential risks if not managed well.
• No Audit Requirement: The company qualifies as small and dormant, so no audit was performed. While this reduces compliance costs, it means financial oversight is limited to internal controls.

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Diagnosis

HOLBECK RISE DEVELOPMENT LTD is in a dormant, pre-operational state with no trading activity or financial transactions recorded since incorporation. The financial "vital signs" indicate an extremely low level of financial resources and zero operational cash flow or asset base. The company resembles a patient in a stable but inactive condition—no signs of distress but also no evidence of growth or vitality.

The business is likely in its incubation phase, awaiting activation of operations or capital injections to fund development projects. While currently stable and compliant with filing requirements, the lack of activity means the company is not generating cash flow or profits, making it reliant on external funding or future operational start.

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Prognosis

If the company remains dormant, it will continue to show minimal financial metrics with limited ability to meet operational demands or invest in growth. However, if business activity commences—such as starting building projects—the financial health will need close monitoring for cash flow management, capital expenditure, and profitability.

Potential risks include:

• Insufficient capital to fund initial development projects
• Lack of diversified management or oversight due to single shareholder/director control
• Possible delays in starting operations which could erode stakeholder confidence

With timely capital investment and operational start, the prognosis could improve significantly as the company moves from dormancy to active trading and asset accumulation.

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Recommendations

1. Activate Trading Operations: Develop a clear business plan and timeline to commence building project development, moving from dormancy to active trading to generate revenue.
2. Capital Injection: Consider raising additional equity or securing financing to build working capital for initial project expenses.
3. Financial Planning and Controls: Establish budgeting, cash flow forecasts, and internal controls to monitor financial health as operations begin.
4. Governance Enhancement: If feasible, involve additional directors or advisors to diversify oversight and reduce risks associated with single-person control.
5. Regular Financial Reviews: Once trading starts, conduct periodic financial health assessments to catch early symptoms of distress, such as cash shortages or rising liabilities.
6. Compliance Maintenance: Continue timely filing of dormant accounts and confirmation statements until the company becomes active.

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