H.P.A DISTRIBUTIONS LTD

Executive Summary

H.P.A Distributions Ltd is a dormant company with negative net assets and no trading activity, indicating an inability to service debt obligations. The balance sheet is weak with persistent net liabilities and poor liquidity, and there is no evidence of operational cash flow generation. Based on the current financial position and dormant status, credit facilities are not recommended at this time.

H.P.A DISTRIBUTIONS LTD - Analysis Report

Company Number: 14194679

Analysis Date: 2025-07-29 15:51 UTC

1. Credit Opinion: DECLINE
   H.P.A Distributions Ltd is a dormant company with no trading activity or revenue generation. The financial statements show persistent net liabilities of £3,987 with no improvement over the last three years. Current liabilities consistently exceed current assets, indicating a poor liquidity position and inability to meet short-term obligations. The company has no employees and minimal operational activity, which raises concerns about its capacity to generate cash flow or service any debt. The company’s sole significant controller, Mr. Inderjit Senth, maintains full control but there is no evidence of active business or financial recovery. Given the negative net assets, lack of trading history, and dormant status, approval for credit facilities is not advisable.

2. Financial Strength:
   The balance sheet reflects weak financial health with net current liabilities of £3,687 as of June 2024 and net liabilities overall of £3,987. There are no fixed assets or other significant resources to leverage. The company’s capital and reserves are negative, indicating accumulated losses or lack of capital injection. The company’s dormant status means no operational cash inflows, and the minimal current assets (£250) hardly cover short-term liabilities. This positions the company as financially fragile and reliant on external funding or capital contributions.

3. Cash Flow Assessment:
   No trading activity and zero employees suggest no operational cash inflows. The working capital position is negative, and current liabilities substantially exceed current assets, indicating negative liquidity. The company is not generating cash flow internally and would be dependent on shareholder loans or capital injections to meet any financial commitments. This is not sustainable for supporting credit facilities or commercial agreements.

4. Monitoring Points:

• Monitor any change from dormant to active trading status and associated financial performance.
• Watch for improvement in liquidity ratios or capital injections to reduce net liabilities.
• Track director and PSC changes that may indicate strategic shifts or restructuring.
• Observe filing compliance and any overdue reports which might signal governance issues.