Company Number: 13285463

Analysis Date: 2025-07-20 13:50 UTC

1. Credit Opinion: DECLINE
   Huntingdon Stoke Limited presents a concerning credit profile. The company has sustained net liabilities for all reported years, with shareholders' deficit increasing from (£43,930) in 2021 to (£132,746) in 2024. Current liabilities significantly exceed current assets, and long-term creditors remain substantial (£1.52 million in 2024). There is no evidence of operating profitability or positive cash flow, and the company's only fixed asset is investment property valued at £1.25 million, which has not appreciated year-on-year. The absence of employees and limited operational activity further suggests minimal business momentum. Given the negative equity, heavy indebtedness, and lack of liquidity, the company appears unable to reliably service new credit facilities without substantial restructuring or capital injection.

2. Financial Strength: Weak
   The balance sheet is heavily leveraged, with net liabilities of (£132,745) and shareholders' funds in negative territory. Although the company holds investment property at £1.25 million, this asset is funded largely by creditors (£1.52 million total liabilities beyond one year and current liabilities), indicating high financial risk. Current assets (£140,644) are insufficient to cover current liabilities (£1,025), but net current assets look positive due to classification (debtor balances are stated as current assets but appear linked to long-term receivables, which is unusual and may overstate liquidity). The continuous increase in creditors and negative retained earnings indicate ongoing losses or deficits. The small share capital (£1) reveals minimal equity buffer and limited capacity to absorb shocks.

3. Cash Flow Assessment: Poor Liquidity and Working Capital
   Cash on hand is negligible (£5 in 2024), indicating very limited immediate liquidity. Debtors represent the bulk of current assets (£140,639), which may not be easily convertible to cash in the short term, raising concerns about working capital quality. Current liabilities are low in comparison to total liabilities but substantial considering the cash position. No employees or operational indicators suggest low or zero operating cash inflows. Without reliable and timely cash receipts, the company could face difficulty meeting short-term obligations or interest payments on its significant loans.

4. Monitoring Points:

• Watch creditor aging and payment patterns, particularly bank loans (£780,000) and other creditors (£744,555).
• Monitor debtor collection efficiency and convertibility into cash.
• Keep track of any capital injections or restructuring plans to restore positive equity.
• Observe property market conditions impacting the valuation and liquidity of the investment property asset.
• Review any changes in operational activity or profit generation that may improve cash flow.
• Director conduct and governance remain important given financial strain and risk of insolvency.