Company Number: 13936836

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: MEDIUM
   HT Controls Limited exhibits moderate solvency concerns given the decline in net assets from £3,328 in 2024 to £100 in 2025 and the presence of net current liabilities in the latest financial year. However, the company is not in liquidation or administration, and filings are up to date, suggesting current regulatory compliance and operational continuity.

2. Key Concerns:

• Declining Net Assets: Net assets have decreased sharply over one year, dropping from £3,328 to £100, indicating potential erosion of equity and financial stability.
• Negative Working Capital: The company reported net current liabilities of £6,342 in 2025 compared to net current assets in previous years, which raises liquidity risk and suggests cash flow pressures.
• Secured Debts and Provisions: The company holds secured hire purchase debt (£19,404) and provisions (£5,540), which may constrain financial flexibility and increase repayment obligations.

3. Positive Indicators:

• Compliance and Timely Filings: No overdue accounts or confirmation statements, demonstrating good regulatory compliance and governance discipline.
• Ongoing Operations: The company remains active, with no indications of insolvency or distress proceedings.
• Asset Base: The company maintains tangible fixed assets (£22,163), supporting operational capability in its engineering and machinery repair activities.

4. Due Diligence Notes:

• Review the income statement and cash flow details (not provided) to assess profitability trends and cash generation capacity.
• Investigate the reasons behind the significant decline in net assets and shift to negative working capital, including any unusual expenses or asset impairments.
• Clarify the terms and obligations related to secured debts and provisions to understand repayment schedules and potential liabilities.
• Ascertain the business model's sustainability given the reported financial trends and limited employee base (average 1 employee).