HOLLY ROAD DEVELOPMENTS LTD

Executive Summary

Holly Road Developments Ltd demonstrates a generally stable financial position with positive net current assets and good compliance, indicating low immediate solvency risk. However, low cash balances and reliance on related party funding present medium liquidity concerns. Further due diligence on cash flow, related party transactions, and operational sustainability is recommended to fully assess risk.

HOLLY ROAD DEVELOPMENTS LTD - Analysis Report

Company Number: 13120501

Analysis Date: 2025-07-20 14:38 UTC

1. Risk Rating: LOW to MEDIUM
   Holly Road Developments Ltd shows a modest but stable financial position with positive net current assets and no overdue filings, suggesting a low immediate solvency risk. However, the relatively small scale of operations, low cash balances, and reliance on debt from group undertakings introduce some medium-term liquidity and operational risk considerations.

2. Key Concerns:

• Liquidity Position: Cash on hand is low (£2,571 as of 31 March 2024) relative to current liabilities (£16,539), indicating potential cash flow constraints despite positive net current assets.
• Dependence on Related Party Funding: The company owes £7,090 to group undertakings, indicating reliance on intra-group financing which may mask underlying funding vulnerabilities.
• Limited Scale and Operating History: Incorporated in 2021 with a single employee and modest assets, the company’s operational stability and ability to generate sustainable profits are unproven. The absence of an income statement limits visibility into profitability and cash generation.

3. Positive Indicators:

• Compliance and Governance: The company is active with up-to-date accounts and confirmation statement filings, showing good regulatory compliance.
• Positive Net Current Assets and Shareholders’ Funds: The company maintains positive working capital (£16,550) and shareholders’ equity, which provides a buffer against immediate insolvency risk.
• Clear Ownership and Control Structure: The ultimate controlling party is identified (Dreamworks Capital AG, Switzerland), and there is transparency around significant control and directors.

4. Due Diligence Notes:

• Cash Flow Analysis: Obtain detailed cash flow and profit & loss information to assess operational cash generation and sustainability.
• Related Party Transactions: Review terms and conditions of amounts owed to group undertakings to understand funding stability and any contingent liabilities.
• Business Model and Contracts: Evaluate the nature of real estate management and rental contracts, including client concentration and revenue streams, to assess operational risk.
• Director Backgrounds: Consider the background and track record of current and previous directors for any governance or conduct risks.
• Future Capital Requirements: Ascertain any planned capital injections or financing needs given the low cash reserves.