HUNKZ & HONEYZ LTD

Executive Summary

Hunkz & Honeyz Ltd is a micro-entity in the early stages of operation with modest net assets and manageable debt levels. The company’s financial position is stable but tight, warranting conditional approval subject to monitoring of cash flow and profitability trends. Close scrutiny of working capital management and debt servicing ability will be essential to ensure ongoing creditworthiness.

HUNKZ & HONEYZ LTD - Analysis Report

Company Number: 14470928

Analysis Date: 2025-07-20 12:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Hunkz & Honeyz Ltd is a newly established private limited company operating in the hairdressing and beauty treatment sector. The company shows modest net assets (£2,655) and net current assets (£1,682) as of its first financial year ending November 2023. The presence of bank loans both short-term (£831) and long-term (£4,147) indicates some external financing that requires servicing. Given the company’s young age (just over one year) and small scale (2 employees), credit exposure should be limited. Approval is recommended on condition of ongoing monitoring of cash flow and profitability trends to ensure the company can meet debt obligations as it matures.

2. Financial Strength:
   The balance sheet reflects small tangible fixed assets (£5,120 net book value) and current assets (£3,814) primarily comprised of debtors. Net current assets are positive but low, suggesting limited working capital buffer. Long-term liabilities (£4,147 bank loans) exceed short-term liabilities, indicating structured financing rather than immediate liquidity pressure. Shareholders’ funds equal net assets, showing no accumulated losses yet but also minimal equity cushion. The company is within the micro-entity accounting regime, with a simple capital structure and no audit requirement, consistent with its size.

3. Cash Flow Assessment:
   The company’s current liabilities slightly exceed current assets excluding debtors, but net current assets are positive due to the inclusion of debtors. Debtors amount to £3,814, which may reflect trade receivables or prepayments; the aging of these is unknown but critical to cash flow. Working capital is tight, and the company must manage cash carefully to cover short-term debts and interest on bank loans. The small workforce and limited fixed assets reduce overhead risks. Close attention should be paid to cash conversion cycles and timely collection of receivables.

4. Monitoring Points:

• Profitability and cash generation as the company completes subsequent trading years
• Debtor collection efficiency and any build-up of overdue amounts
• Servicing capacity of bank loans, especially the long-term portion
• Changes in working capital and liquidity ratios
• Any additional borrowing or capital injections that impact leverage
• Director conduct and governance, although currently the sole director (Mrs Jacqueline Mepham) holds full control without adverse records