HOLM HILL DEVELOPMENTS LTD

Executive Summary

HOLM HILL DEVELOPMENTS LTD exhibits a deteriorating financial position with negative net assets and marginal liquidity, posing significant credit risk. The company’s micro-entity status with no employees and minimal financial activity suggests limited capacity to service debt. Credit facilities are not recommended without substantial improvement in financial health or additional security.

HOLM HILL DEVELOPMENTS LTD - Analysis Report

Company Number: 13063585

Analysis Date: 2025-07-20 13:12 UTC

1. Credit Opinion: DECLINE
   HOLM HILL DEVELOPMENTS LTD shows a weak financial position with negative net assets (£-3,126 in 2024) indicating liabilities exceed assets. The company operates as a micro-entity with minimal turnover and no employees, suggesting limited operational scale. The persistent negative equity over the years signals an erosion of capital, raising concerns about its ability to service debt or absorb financial shocks. The company’s balance sheet and cash flow data do not inspire confidence in its capacity to meet credit obligations without additional financial support or restructuring.

2. Financial Strength:
   The balance sheet reveals current assets of £34,814 against current liabilities of £36,440, resulting in negative net current assets (working capital) of approximately £-1,626, which is a liquidity concern. More critically, total liabilities (including creditors due after one year of £36,440) exceed total assets, leading to negative shareholders’ funds of £3,126. The company’s fixed asset position is unclear but likely minimal given the micro status and lack of employees. The negative equity trend from £541 in 2021 to £-3,126 in 2024 indicates deteriorating financial health and insufficient capital buffer.

3. Cash Flow Assessment:
   No direct cash flow statement is provided, but the static current assets and increasing liabilities suggest tight liquidity and limited cash generation. The absence of employees and the unchanged current assets figure over three years implies minimal operational activity, limiting cash inflows. The current liabilities slightly exceeding current assets point to potential short-term liquidity risk. Without positive net current assets or visible profit reserves, the company’s ability to generate or maintain healthy cash flow is questionable.

4. Monitoring Points:

• Monitor any changes in net current assets and net liabilities to assess improving or worsening liquidity.
• Watch for filing of detailed accounts or cash flow statements to better understand operational performance.
• Track any changes in ownership or director appointments that could signal restructuring or financial rescue.
• Review any new credit applications or financial support requests critically given current weak financial metrics.