HOMININ SEARCH LIMITED

Executive Summary

Hominin Search Limited demonstrates a fragile financial position with negative net assets and significant long-term liabilities overshadowing current assets, raising concerns about its capacity to service debt. While short-term liquidity appears adequate, the lack of tangible assets and weak equity base limit financial resilience. The company is not currently recommended for credit extension without substantial improvement in financial fundamentals.

HOMININ SEARCH LIMITED - Analysis Report

Company Number: 12382977

Analysis Date: 2025-07-20 15:16 UTC

1. Credit Opinion: DECLINE
   Hominin Search Limited shows a weak financial position with net liabilities indicated by negative net assets (£-16,485 at 2023 year-end). The company carries long-term liabilities (~£46,100) exceeding its current assets (~£29,782), signaling over-leverage and potential difficulty in meeting debt obligations. Limited fixed assets and a very small equity base (£1 share capital) reduce collateral value and financial buffer. The company’s micro-entity status and minimal employee count (1) suggest a small operational scale, and no significant financial improvement trend is visible over recent years. These factors collectively raise concerns over its ability to service new or existing credit facilities reliably.

2. Financial Strength:
   The balance sheet reveals persistent negative net assets and high liabilities relative to assets, with total net liabilities approximately £16.5k in 2023. Fixed assets have fallen to zero, implying no long-term tangible assets to support borrowing. Current assets have remained flat (~£29.7k) while current liabilities are minimal, but a significant creditor balance falls due beyond one year (~£46k). The company’s equity position is negative, indicating erosion of shareholder funds and weak financial resilience. This undermines capital adequacy and increases risk of default under financial stress.

3. Cash Flow Assessment:
   Current assets mainly consist of cash and short-term receivables, but the company’s net current assets are positive (£29,615), indicating short-term liquidity is adequate to cover immediate liabilities. However, the large long-term creditor balance suggests that cash flow outflows are committed beyond the short term, potentially straining liquidity if revenues do not improve. The small scale of operations (1 employee) limits working capital needs but also constrains revenue generation. Without detailed cash flow statements, it is prudent to infer limited free cash flow and constrained operating cash generation capacity.

4. Monitoring Points:

• Track changes in net assets and equity position to detect further erosion or improvement.
• Monitor creditor balances, especially long-term liabilities, for restructuring or repayment plans.
• Assess revenue growth and profitability trends in future filings to gauge operational sustainability.
• Review cash flow statements (if available) for operational cash generation and liquidity trends.
• Watch for any director or management changes that might impact governance and financial controls.