Company Number: 14682961

Analysis Date: 2025-07-29 16:43 UTC

1. Credit Opinion: DECLINE
   HUNTGRANGE LTD is a newly incorporated private limited company (February 2023) operating in the sale of used cars and light motor vehicles (SIC 45112). The latest financials show net liabilities of £15,688 and negative net current assets of £18,021, indicating a weak balance sheet and working capital deficiency. The company has not demonstrated profitability or positive equity, and the nature of its creditors (£259,683) compared to current assets (£241,662) suggests reliance on short-term liabilities to finance operations. Moreover, the company has no employees reported, which may indicate limited operational scale or capacity. Given the lack of established financial strength, no profitability track record, and a negative working capital position, the company’s ability to service any credit facility or meet commercial payment obligations is questionable.

2. Financial Strength:
   The company holds fixed assets valued modestly at £2,333 (net of depreciation). Current assets mainly consist of inventories (£209,537) and cash (£31,864) but are insufficient to cover current liabilities of £259,683, resulting in negative working capital of £18,021. Shareholders’ funds are negative, reflecting accumulated losses or undercapitalization. The balance sheet signals financial stress and a fragile capital structure.

3. Cash Flow Assessment:
   Cash at bank of £31,864 provides some liquidity buffer; however, it is relatively low compared to creditors due within one year. The company’s sizeable current liabilities indicate potential pressure on cash flows. Absence of employees suggests minimal payroll obligations, but with inventories high relative to cash and debt, the company could face liquidity challenges if sales do not convert quickly to cash. No information on cash flow from operations is provided, raising concerns about the company’s capacity to generate positive operational cash flow in the near term.

4. Monitoring Points:

• Working capital trends and monthly cash flow statements to assess liquidity improvement or deterioration.
• Inventory turnover rates to evaluate efficiency in converting stock into cash.
• Timely settlement of current liabilities to avoid supplier or creditor disputes.
• Changes in shareholders’ funds or capital injections that may strengthen the balance sheet.
• Any new contracts or revenue streams that demonstrate growth and operational viability.