HOOPER & SONS PLASTERING LTD

Executive Summary

Hooper & Sons Plastering Ltd shows signs of financial distress with negative working capital and shareholders’ funds as of the 2024 year-end, raising significant solvency concerns. While regulatory compliance is maintained and fixed assets have increased, the liquidity position and limited operational scale warrant close scrutiny. Further financial detail and operational insights are recommended to fully assess investment risk.

HOOPER & SONS PLASTERING LTD - Analysis Report

Company Number: 13658764

Analysis Date: 2025-07-20 19:04 UTC

1. Risk Rating: HIGH
   The company exhibits a deteriorating financial position with negative net current assets and shareholders' funds as of the latest financial year, indicating potential solvency challenges.

2. Key Concerns:

• Negative Net Current Assets: The company’s net current assets worsened from -£2,922 in 2023 to -£28,628 in 2024, suggesting liquidity constraints and an inability to cover short-term liabilities.
• Negative Shareholders’ Funds: A shift from positive equity (£3,064) in previous years to a deficit of -£8,334 signals accumulated losses and erosion of capital, raising concerns about financial stability.
• Single Director and Employee Dependence: With only one director (also the sole significant controller) and one employee, the company’s operational resilience and governance structure are limited, potentially affecting sustainable business continuity.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date on both accounts and confirmation statement filings, reflecting adherence to regulatory requirements.
• Increment in Fixed Assets: Fixed assets increased notably from £5,986 in 2023 to £20,294 in 2024, which may indicate investment in operational capacity or equipment.
• Active Trading Status: The company remains active and is not under liquidation or administration, suggesting ongoing operations.

4. Due Diligence Notes:

• Investigate Causes of Declining Liquidity: Detailed review of cash flows and creditor terms is needed to understand the sharp increase in current liabilities and negative working capital.
• Assess Profitability and Revenue Trends: The absence of profit and loss data limits visibility; obtaining management accounts or turnover figures would clarify operational performance.
• Evaluate Director’s Financial Support or Guarantees: Given the negative equity and single director control, it would be prudent to confirm whether personal funds or contingent support mechanisms exist to sustain the business.
• Review Nature of Fixed Asset Increase: Clarify the composition and funding of the asset growth to assess if these are productive investments or potential sunk costs.
• Consider Industry and Market Conditions: As a plastering company, external factors such as construction sector health should be evaluated to understand future prospects.