H&T EVENTS LIMITED

Executive Summary

H&T Events Limited, a newly incorporated event catering company, currently exhibits financial vulnerability with negative net current assets and shareholders' funds, indicating solvency and liquidity risks. While the company maintains good regulatory compliance and director control, reliance on director funding and limited operational history suggest caution. Further due diligence on cash flow plans and funding is essential to assess future viability.

H&T EVENTS LIMITED - Analysis Report

Company Number: 15222241

Analysis Date: 2025-07-29 19:49 UTC

1. Risk Rating: HIGH
   Given the company's very recent incorporation and the financial position at the first reporting date, there are significant solvency and liquidity concerns. Negative net current assets and shareholder funds indicate the company is not currently in a financially stable position to meet its obligations without further capital injection or revenue generation.

2. Key Concerns:

• Negative Net Current Assets (-£1,361): Current liabilities exceed current assets, suggesting potential difficulty in meeting short-term debts as they fall due.
• Negative Shareholders' Funds (-£361): The company’s liabilities exceed its assets, indicating an insolvent balance sheet position at the reporting date.
• Director’s Loan Account (£2,168): The director has advanced funds to the company, which remains unpaid. This reliance on director funding may signal cash flow difficulties or insufficient external financing.

3. Positive Indicators:

• Active Status with No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating good governance in regulatory compliance.
• Single Director with Full Control: Clear ownership and control by Mrs. Tania Kaur Virk simplifies decision-making and accountability.
• Tangible Fixed Assets (£1,100): The company holds some fixed assets, albeit modest, which may support operations.

4. Due Diligence Notes:

• Cash Flow Projections and Business Plan: Investigate management’s plan to improve liquidity and solvency, including anticipated revenue streams and capital injections.
• Nature and Terms of Director's Loan: Clarify whether the director’s loan is repayable, interest-bearing, or convertible into equity, and assess the risk if the director withdraws support.
• Operational Status and Contracts: Confirm whether the company has established contracts or client commitments in event catering (SIC 56210) that would generate sustainable income.
• Future Funding Arrangements: Determine if additional funding or bank facilities have been secured or are planned to support working capital needs.
• Historical Context: As a newly formed entity (incorporated October 2023), limited financial history restricts trend analysis; further monitoring is required.