HOME-X LABS LIMITED

Executive Summary

HOME-X LABS LIMITED is an active private limited company operating within a group structure, showing a modest asset base but pressured short-term liquidity as of its last financial year ending June 2021. While compliance and management expertise are positive, the reliance on intercompany loans and negative working capital highlight medium risk that warrants updated financial review and scrutiny of group support mechanisms. Investors should seek more recent data and detailed cash flow analysis to confirm ongoing operational and financial stability.

HOME-X LABS LIMITED - Analysis Report

Company Number: SC651398

Analysis Date: 2025-07-29 20:07 UTC

1. Risk Rating: MEDIUM
   Justification: The company is active and compliant with filing deadlines, with no overdue returns. However, the latest financials (year ending June 2021) show net current liabilities and material long-term liabilities, indicating some short-term liquidity stress and leverage. The company is a subsidiary within a group structure, which could mitigate risk but also reflects dependency on the parent group.

2. Key Concerns:

• Negative net current assets (£-606k) as at June 2021, indicating potential liquidity constraints to cover short-term obligations.
• Significant amounts owed to group undertakings (£1.42m current, £0.27m non-current) suggest reliance on intra-group financing which may present refinancing or operational risk if group support weakens.
• Operating lease commitments (£358k) add fixed cost obligations, which combined with early-stage trading (first revenues October 2020) may pressure cash flows.

3. Positive Indicators:

• Directors include a Chartered Accountant, indicating financial expertise in management.
• No overdue filings and audit exemption status reflects compliance and possibly straightforward financials.
• The company is part of a wider group with controlling party VVS Investments Ltd, potentially providing financial and operational support.
• Net assets positive at £487k and fixed assets of over £1.5m show some underlying asset base.

4. Due Diligence Notes:

• Obtain more recent financials post June 2021 to assess current liquidity and solvency given early-stage nature and possible changes.
• Review intercompany loan terms and parent group financial strength to understand dependence risks.
• Analyze cash flow statements to evaluate operational cash generation and adequacy relative to lease and creditor commitments.
• Investigate the nature of the tangible fixed assets and their utilization, especially leasehold improvements and equipment, to judge operational sustainability.
• Verify whether any contingent liabilities or off-balance sheet obligations exist.