Company Number: SC689752

Analysis Date: 2025-07-29 20:16 UTC

1. Credit Opinion: DECLINE
   Hunter Street Properties Limited shows significant financial distress. The company’s net current liabilities have widened sharply from £3,386 in 2023 to £85,256 in 2024, with shareholders’ funds similarly deteriorating into a deep deficit (£-85,259). The current liabilities largely comprise related party loans that are deferred but represent a substantial funding gap. The company is effectively insolvent on a going-concern basis without additional capital or debt restructuring. The lack of operating employees and minimal current assets further weaken its creditworthiness. Given these factors and the company’s short trading history (incorporated 2021), the risk of default on credit facilities is high.

2. Financial Strength:
   The balance sheet is severely impaired. Current assets stand at only £359, mainly cash (£347) and negligible debtors (£12), while current liabilities are £85,615. The company has no fixed assets reported, and the deficit in net assets (£85,256) indicates accumulated losses and insufficient equity. The capital structure is weak with only £3 in share capital and no retained earnings. Loans from related parties totaling approximately £77,000 are classified as creditors but are acknowledged as repayable only “when financial position permits,” indicating reliance on director/connected party funding. This structure leaves the company vulnerable to liquidity shocks and creditor pressure.

3. Cash Flow Assessment:
   Liquidity is critically low. Cash at bank dropped from £4,413 in 2023 to £347 in 2024, suggesting cash burn or insufficient inflows. The company’s working capital is heavily negative due to large current liabilities. Absence of employees implies minimal operational activity, raising concerns about revenue generation and cash inflows. The company’s reliance on director loans deferred repayment indicates constrained cash resources. Without improvement in cash generation or capital injection, the company’s ability to meet short-term obligations is doubtful.

4. Monitoring Points:

• Track changes in current liabilities, especially related party loans and their repayment terms.
• Monitor cash flow trends and any new capital injections or financing arrangements.
• Observe any filing of overdue accounts or confirmation statements that can signal management issues.
• Watch for operational activity resumption or expansion indicating potential revenue improvement.
• Review any director conduct changes or governance matters that might impact financial stewardship.