HOLIFERM IP LIMITED

Executive Summary

HOLIFERM IP LIMITED is an active but dormant private limited company with minimal financial activity and nominal equity, indicating no current operational revenue or expenses. The company carries a significant contingent liability related to group loans, representing a latent financial risk that requires careful monitoring. To improve its financial health, the company should manage contingent liabilities, optimize cost structures, and prepare for potential future trading activities.

HOLIFERM IP LIMITED - Analysis Report

Company Number: 14460524

Analysis Date: 2025-07-29 17:41 UTC

Financial Health Assessment for HOLIFERM IP LIMITED

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1. Financial Health Score: D (Dormant, Minimal Activity)

Explanation:
HOLIFERM IP LIMITED is classified as a dormant company with virtually no trading activity or financial transactions during the reported periods. The company shows extremely minimal financial activity, indicated by nominal current assets and equity (£1 each). This results in a low financial health grade, not due to distress but due to inactivity and lack of operating financial data.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Status	Active	Company is active but dormant (no trading activity)
Account Category	Dormant	No significant financial transactions
Shareholders' Funds	£1	Nominal equity, indicates no capital investment yet
Net Current Assets	£1	No working capital, no cash or receivables of note
Debtors	£1	Negligible receivables
Employees	5	Company has staff despite dormancy
Financial Commitments	£1.18M loan exposure (jointly liable)	Significant contingent liability on loans of group

• Dormant status: The company has not generated income or incurred expenses during the year ending May 2024.
• Minimal assets and equity: Only £1 of debtors and net current assets, indicating no operational cash flow or working capital.
• Contingent liability: The company is jointly liable for over £1.18 million in loans issued to the parent company, indicating potential future financial exposure.
• Staff presence: Despite dormancy, 5 employees are recorded, which may imply planned future activity or administrative costs.

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3. Diagnosis: What the Financial Data Reveals

• "Healthy cash flow" symptoms absent: The company shows no cash inflows or outflows, which is typical of a dormant entity. This means no immediate financial stress but also no revenue generation.
• "Symptoms of distress" absent: There are no liabilities recorded other than the contingent loan exposure, and no negative net assets or losses.
• Dormant entity with latent exposure: While currently inactive operationally, the company carries joint liability for a significant loan related to the parent group. This represents a potential "hidden ailment" that could impact financial health if the parent company defaults.
• Early-stage or holding company: The minimal financial footprint and lack of trading suggest this company likely serves as an IP holding or administrative vehicle within the group, consistent with its SIC code (leasing intellectual property).

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4. Recommendations: Actions to Improve Financial Wellness

• Clarify contingent liabilities: Monitor and manage the joint loan exposure carefully. Establish a plan to mitigate risk if the parent company's financial position deteriorates.
• Prepare for active operations: If the company plans to become operational, develop a detailed business plan including capital injection, working capital needs, and revenue forecasts.
• Regular financial monitoring: Although dormant, maintain timely filings and internal oversight to avoid penalties and ensure readiness for future activity.
• Cost management: Assess the necessity of maintaining 5 employees during dormancy to avoid unnecessary overhead draining resources.
• Transparency and governance: Ensure directors are fully aware of the financial commitments and potential risks linked to the parent company loans.

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Medical analogy summary:
HOLIFERM IP LIMITED currently resembles a "patient in remission"—no active symptoms (financial transactions) but carrying a latent "condition" (loan liability exposure) that requires monitoring. The company’s financial "vital signs" are stable but minimal, indicating dormancy rather than distress. Proactive management will be essential to prevent latent risks from manifesting as financial distress should group-level issues arise.

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