HOUGH PROPERTY INVESTMENTS LTD

Executive Summary

HOUGH PROPERTY INVESTMENTS LTD demonstrates significant solvency and liquidity challenges, with net liabilities and working capital deficits indicating financial distress. While compliance with filings and holding property assets provide some stability, the absence of operational activity and negative equity pose material risks. Further investigation into creditor terms and business viability is essential before investment consideration.

HOUGH PROPERTY INVESTMENTS LTD - Analysis Report

Company Number: 14195375

Analysis Date: 2025-07-20 18:35 UTC

1. Risk Rating: HIGH
   The company exhibits a weak solvency position with net liabilities reported at the latest year-end. The significant level of long-term creditors exceeding net assets indicates financial distress. Liquidity is also a concern given minimal current assets and ongoing negative net current assets.

2. Key Concerns:

• Negative net assets of £268 at 30 June 2024, worsening from a deficit of £1,449 the prior year, indicating insolvency risk.
• Current liabilities within one year (£21,565) far exceed current assets (£945), creating a negative working capital position and potential cash flow constraints.
• No depreciation charged and zero employees suggest limited operational activity or revenue generation, raising questions about sustainability and ongoing business viability.

3. Positive Indicators:

• The company holds fixed assets in the form of freehold property valued at £74,586, which may provide some collateral value in distress scenarios.
• Accounts and confirmation statement filings are up to date, showing compliance with regulatory filing requirements.
• The company is active and not undergoing liquidation or administration, implying ongoing operations or at least no formal insolvency proceedings.

4. Due Diligence Notes:

• Investigate the nature and terms of the creditors due after more than one year (£54,234) to understand repayment obligations and potential restructuring options.
• Confirm the revenue streams and cash flow generation capacity, given the absence of employees and no depreciation charges.
• Review the director’s strategy and plans for returning the company to profitability or addressing the negative equity position.
• Examine any contingent liabilities or off-balance sheet risks not reflected in the micro-entity accounts.
• Verify asset valuations and confirm no impairments are needed on the freehold property assets.