HOLMEFIELD DEVELOPMENTS LIMITED

Executive Summary

Holmefield Developments Limited maintains a solid fixed asset base and has shown modest equity growth, but its financial position is challenged by a significant working capital deficit and limited liquid assets versus current liabilities. While compliance and active status mitigate some governance concerns, liquidity and operational sustainability require further detailed financial analysis. Investors should proceed with caution pending deeper insight into profitability, cash flows, and liability structure.

HOLMEFIELD DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13160304

Analysis Date: 2025-07-20 15:38 UTC

1. Risk Rating: MEDIUM
   Justification: The company holds significant fixed assets relative to its size, indicating some asset backing; however, current liabilities are very high compared to current assets, resulting in a materially negative net working capital position. The modest but positive net asset base and equity growth are encouraging, but the substantial short-term liabilities relative to liquid assets and lack of detailed profit/loss info pose solvency and liquidity concerns.

2. Key Concerns:

• Liquidity Risk: Current liabilities (~£231,814) far exceed current assets (~£5,933), suggesting potential difficulties meeting short-term obligations without asset liquidation or refinancing.
• Working Capital Deficit: Negative net current assets (~-£225,436) indicate operational cash flow pressures which could compromise ongoing business activities.
• Limited Financial Disclosure: Absence of profit and loss data and minimal equity (£15,461) restrict assessment of profitability and capital adequacy to support business sustainability.

3. Positive Indicators:

• Fixed Asset Base: A stable fixed asset value of £243,860 over recent years may provide collateral or long-term value retention.
• Equity Growth: Shareholders’ funds have more than doubled from £7,186 in 2023 to £15,461 in 2024, indicating some strengthening of the balance sheet.
• Compliance: The company is active, current with filing of accounts and confirmation statements, with no overdue submissions or liquidation status.

4. Due Diligence Notes:

• Investigate nature and terms of current liabilities to understand maturity profiles, creditor concentration, and any contingent liabilities.
• Review cash flow statements and profit and loss accounts (not available here) to assess operational performance and ability to service debt.
• Confirm the valuation and liquidity of fixed assets and whether these are encumbered or can be realized if needed.
• Assess director background further, noting one director is a Chartered Accountant which may support sound financial management.
• Understand business model and revenue streams under SIC 68209 to evaluate operational sustainability and market risks.