Company Number: 12756695

Analysis Date: 2025-07-29 16:27 UTC

1. Risk Rating: MEDIUM

Justification: Holdken Limited shows a significant imbalance between current assets and current liabilities, with current liabilities vastly exceeding current assets in recent years, indicating potential liquidity stress. However, the company has substantial fixed assets and positive net assets, which mitigates immediate solvency concerns. The absence of overdue filings and a stable single-employee operation suggest controlled governance but limited operational scale.

2. Key Concerns:

• Liquidity Risk: Current liabilities significantly exceed current assets (£1.6M liabilities vs. ~£45k assets in 2024), raising concerns over short-term cash flow and ability to meet obligations as they fall due.
• Reliance on Long-Term Creditors: Creditors due after one year remain very high (~£1.6M), which may imply reliance on long-term financing or related party loans that require scrutiny.
• Limited Operational Scale: Only one employee and classification as a micro-entity may indicate limited business activity and narrow revenue streams, potentially affecting sustainability.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: The company’s net assets increased from £67.5k to £220k over the last year, indicating growth in equity value.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting good regulatory compliance.
• Stable Fixed Asset Base: Fixed assets increased to approximately £1.78M, which may represent valuable long-term investments or property backing the business.

4. Due Diligence Notes:

• Investigate the nature and terms of the substantial creditors, both current and long-term, to understand repayment schedules, security, and related party involvement.
• Assess cash flow statements and profit & loss details (not currently provided) to verify operational cash generation and sustainability.
• Clarify the business model and revenue streams given the micro-entity status and limited employee count.
• Confirm the valuation and liquidity of fixed assets to evaluate their potential to cover liabilities if needed.
• Review director and secretary backgrounds for any regulatory or conduct issues, although none are indicated in the current data.