Company Number: SC713416

Analysis Date: 2025-07-20 14:11 UTC

1. Credit Opinion: DECLINE
   HUMNA LTD presents a concerning financial profile from a credit perspective. The company’s net assets and shareholders' funds have deteriorated significantly over the last two years, moving from a modest positive net asset position in 2021 to a negative net asset position of £2,088 by 2023. The balance sheet shows a consistent decline in current assets and persistent short-term liabilities exceeding liquid assets, indicating liquidity stress. The company remains micro-sized with minimal turnover (£48k in 2022) and only one employee, suggesting limited operational scale and diversification. The negative working capital and continued reliance on creditors, including a long-term creditor of £2,000, further highlight financial vulnerability. Given these factors, the ability to service new or existing debt obligations is questionable without substantial financial improvement or external support.

2. Financial Strength:
   The balance sheet reflects weak financial health. Fixed assets are minimal (£1,117), and current assets have decreased sharply from £12,442 in 2021 to £2,629 in 2023, while current liabilities remain high (£3,834). This results in a negative net current asset position of £1,205 as of 2023. The company’s net liabilities position worsened from £983 negative in 2022 to £2,088 negative in 2023. There is an outstanding long-term creditor liability of £2,000, which adds to the financial burden. Shareholder equity is negative, indicating the company is technically insolvent on a net asset basis. The absence of external audit and reliance on micro-entity accounting standards limit the depth of financial disclosure, but the available data suggests weak capital structure and poor asset coverage for liabilities.

3. Cash Flow Assessment:
   Limited data on cash flow is provided, but the significant reduction in current assets combined with current liabilities exceeding current assets suggests liquidity issues. The decrease in working capital and negative net current assets imply the company may struggle to meet short-term obligations as they fall due. The single employee count and low turnover may constrain cash generation capacity. Without evidence of strong cash inflows or capital injection, the company’s ability to sustain operations and repay creditors is doubtful. The director’s 100% shareholding suggests potential for owner support, but this is not guaranteed.

4. Monitoring Points:

• Track monthly cash flow and liquidity ratios closely to detect worsening short-term solvency.
• Monitor turnover and gross margins for signs of operational improvement or decline.
• Review any changes in creditor terms or new borrowing that may impact working capital.
• Assess any capital injections or shareholder loans that could stabilize the balance sheet.
• Watch for late filings or director changes that may signal governance or operational distress.