Company Number: 13503072

Analysis Date: 2025-07-20 16:49 UTC

1. Credit Opinion: DECLINE
   HQA Homes Ltd shows a weak financial position with net liabilities of £3,627 as at 31 July 2024, indicating insolvency on a balance sheet basis. The company has minimal current assets (£33 in cash) against short-term liabilities of £3,660, resulting in negative working capital and poor liquidity. The lack of operating employees and absence of turnover data raises concerns about ongoing trading viability. The recent director change and company name change suggest restructuring but do not mitigate the financial weakness. Without clear evidence of improved cash flows or capital injection, the ability to service debt or meet commercial obligations is doubtful.

2. Financial Strength:
   The balance sheet reveals a negative net asset position with shareholders' funds at -£3,627, deteriorated from positive equity in previous years. The company holds no fixed assets and only nominal cash, while current liabilities exceed current assets by a large margin. The company is classified under small company exemption rules but shows signs of financial distress. This weak capitalization undermines its financial resilience and creditworthiness.

3. Cash Flow Assessment:
   Cash on hand is negligible (£33), and no turnover or operating cash inflows are reported. Current liabilities of £3,660 are due within one year, creating immediate liquidity pressure. Negative net current assets highlight insufficient working capital to cover short-term obligations. The absence of employees suggests no active revenue generation, further aggravating the cash flow risk. Immediate funding or restructuring would be necessary to restore liquidity.

4. Monitoring Points:

• Watch for filing of next accounts and confirmation statements to detect any improvement in financials or business activity.
• Monitor any capital injections or director loans that may shore up liquidity.
• Track changes in trade creditors and whether liabilities are being settled on time.
• Observe any operational developments, such as hiring or contract wins, indicating turnaround potential.