HOUGHTONS OF EDINBURGH LTD

Executive Summary

The company, Houghtons of Edinburgh Ltd, shows significant financial distress evidenced by negative net assets and net current liabilities shortly after incorporation. While compliance with filing obligations is maintained and ownership structure is clear, the absence of employees and operational data raises concerns about business viability. Further inquiry into liabilities and parent company support is recommended before investment consideration.

HOUGHTONS OF EDINBURGH LTD - Analysis Report

Company Number: 14849880

Analysis Date: 2025-07-29 17:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities of £72,659 as of the latest year-end. Negative net current assets and net liabilities indicate it is unable to cover short-term obligations from current assets, signaling elevated financial risk.

2. Key Concerns:

• Negative net current assets (£-72,659) and net liabilities suggest an inability to meet short-term liabilities without additional funding.
• Zero employees and minimal operational data imply the business may not yet be operational or generating revenue.
• Being a recently incorporated micro-entity (May 2023) with no audit and limited disclosures increases uncertainty around financial stability and operational viability.

3. Positive Indicators:

• The company is currently active with no overdue filings, indicating compliance with statutory requirements.
• Ownership is consolidated under a single entity (Houghtons Holdings Ltd) with full control, potentially facilitating capital injections or operational support.
• The industry classification (wholesale of fruit and vegetables) is a stable sector with predictable demand.

4. Due Diligence Notes:

• Investigate the nature and source of the current liabilities (£114,820) to assess whether they are trade payables, director loans, or other debts.
• Clarify the company’s business activities and plans for revenue generation given zero employees and negative net assets.
• Confirm any support or financial commitments from the parent company (Houghtons Holdings Ltd) to cover liabilities or fund operations.
• Review subsequent events after May 2024 for changes in financial position or operational progress.