Company Number: 12791284

Analysis Date: 2025-07-29 14:24 UTC

1. Credit Opinion: DECLINE
   House Helpers Limited presents substantial financial weakness. The company has shown a worsening negative net asset position, increasing from -£12,467 in 2023 to -£29,043 in 2024, indicating accumulated losses eroding equity. Net current liabilities have almost doubled from -£18,610 to -£32,115, signaling a severe working capital deficit and liquidity stress. The company’s cash reserves are minimal (£2,567) relative to current liabilities (£34,682), restricting its ability to meet short-term obligations. These factors raise significant concerns about the company’s ability to service debt and honor commercial commitments without additional capital injection or restructuring. Given the negative equity and worsening liquidity, an unconditional credit facility is not advisable.

2. Financial Strength:
   The balance sheet reveals deteriorating financial health over recent years. The tangible fixed assets have been written down from £9,214 to £3,072, reflecting depreciation and impairment without replacement investment. Shareholders’ funds are deeply negative, indicating sustained losses. The company’s liabilities, particularly current liabilities, exceed current assets by a wide margin, reflecting a high risk of insolvency if cash flows do not improve. The absence of any significant share capital (only £10) means limited buffer against losses.

3. Cash Flow Assessment:
   The company’s liquidity position is weak. Cash at bank is only £2,567 against current liabilities of £34,682, giving a current ratio well below 1 (approximately 0.07). This indicates the company cannot cover its short-term debts with readily available cash and receivables. Negative net current assets highlight insufficient working capital, which could lead to payment delays or defaults. The accounts do not disclose detailed cash flow statements, but the trend implies ongoing cash burn. The minimal employee count (1) suggests a small operational scale which might limit both revenue and cash generation.

4. Monitoring Points:

• Track net current assets and cash levels monthly to assess liquidity improvements or deterioration.
• Monitor any changes in creditors, especially the "other creditors" balance, to identify payment delays or creditor pressure.
• Watch for capital injections or restructuring plans that could improve shareholders’ funds and liquidity.
• Review updated financial statements for revenue trends and profitability to identify any turnaround signs.
• Assess director conduct and related party transactions for governance risks given the financial stress.