HSLL PROPERTY SERVICES LTD

Executive Summary

HSLL Property Services Ltd, a micro-entity incorporated in late 2022, shows significant liquidity and solvency concerns with current liabilities vastly exceeding current assets as of March 2024. While regulatory filings are up to date and fixed assets appear substantial, the limited equity base and lack of profitability disclosure warrant caution. Further due diligence on asset quality and operational cash flows is essential before considering investment exposure.

HSLL PROPERTY SERVICES LTD - Analysis Report

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.