Company Number: 12722792

Analysis Date: 2025-07-29 18:58 UTC

1. Risk Rating: MEDIUM
   HolidayHost Ltd demonstrates a positive net asset position and current asset coverage exceeding current liabilities, indicating basic solvency. However, the company’s net current assets are modest (£5,783) relative to current liabilities (£247,018), and it carries secured finance lease obligations, which signals some liquidity strain. The presence of related party transactions and relatively small equity base also add moderate risk factors.

2. Key Concerns:

• Liquidity Pressure: Current assets (£252,801) barely exceed current liabilities (£247,018), resulting in a narrow net working capital cushion (£5,783), which may be insufficient to absorb unexpected cash flow shocks.
• High Short-term Creditors: Significant creditors within one year, including large ‘other creditors’ (£184,449) and finance lease obligations (£15,410), suggest potentially strained payment obligations.
• Related Party Transactions: The company engages in material transactions with related entities, which may present conflicts or dependency risks that require scrutiny.

3. Positive Indicators:

• Positive Net Assets and Equity Growth: Shareholders’ funds increased from £16,876 (2023) to £26,964 (2024), indicating retained profits and equity strengthening.
• Cash Position Improvement: Cash at bank increased substantially from £132,226 to £217,680, improving immediate liquidity.
• No Overdue Filings and Active Status: The company is current on statutory filings for accounts and confirmation statements, evidencing regulatory compliance and governance discipline.
• Stable Employee Base: Average employee count remains stable at 5, suggesting operational continuity.

4. Due Diligence Notes:

• Investigate the composition and nature of ‘other creditors’ (£184,449) to assess payment terms and risk of default.
• Review the terms and impact of finance lease/hire purchase contracts, including the secured assets and maturity profiles.
• Examine related party transactions with Pebbles Laundry Limited and Pebbles of Salcombe Limited for pricing, terms, and dependency risk.
• Obtain management commentary on cash flow forecasts and working capital management, given the tight liquidity position.
• Confirm absence of director or governance concerns, including any disqualification or regulatory issues.