Company Number: 14501901

Analysis Date: 2025-07-29 12:35 UTC

1. Risk Rating: HIGH
   Despite being a recently incorporated micro-entity, HSLL Property Services Ltd exhibits significant solvency and liquidity concerns as of the latest accounts (year ended 31 March 2024). The company’s current liabilities substantially exceed its current assets, indicating a working capital deficit and potential cash flow difficulties.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities of £318,774 far exceed current assets of £10,850, resulting in net current liabilities of approximately £307,924. This sharp imbalance raises red flags regarding the company’s ability to meet short-term obligations.
• Limited Equity Cushion: Shareholders’ funds are only £5,201, a marginal positive net asset position despite significant current liabilities. The low equity base provides minimal buffer against operational or financial shocks.
• Lack of Audited Financials and Profit & Loss Disclosure: Financial statements are unaudited and prepared under micro-entity exemptions, with directors electing not to present profit and loss figures. This limits transparency on operational performance and profitability, impeding thorough risk assessment.

3. Positive Indicators:

• No Overdue Filings: Both the latest accounts and confirmation statement are filed on time, reflecting compliance with regulatory requirements.
• Active Status with Stable Directorship: The company is active with two directors who have maintained their appointments since incorporation, indicating stable governance structure at this early stage.
• Fixed Assets Base: The company holds fixed assets valued at £313,125, which may provide collateral value or operational capacity, depending on asset nature and liquidity.

4. Due Diligence Notes:

• Investigate the nature and liquidity of the fixed assets to determine their potential to alleviate solvency issues.
• Obtain or request management accounts or internal financial reports to understand cash flow dynamics and operational profitability, given the absence of P&L disclosures.
• Assess the company’s business model and revenue generation capacity, especially given the SIC code indicating real estate letting, to evaluate sustainability prospects.
• Review any contingent liabilities or off-balance sheet commitments not disclosed in the micro-entity accounts.
• Confirm the absence of director disqualifications or regulatory issues beyond Companies House filings.