HYDE CORNER LTD

Executive Summary

HYDE CORNER LTD is a newly incorporated micro-entity with substantial fixed assets but significant long-term liabilities that considerably exceed net assets, posing solvency concerns. While the company complies with filing requirements and has transparent governance, its early stage of operations with no employees and minimal current assets suggests liquidity and operational risks. Further scrutiny of asset quality, creditor terms, and business viability is recommended before investment.

HYDE CORNER LTD - Analysis Report

Company Number: 14615861

Analysis Date: 2025-07-29 16:59 UTC

1. Risk Rating: MEDIUM
   The company exhibits a moderately high level of long-term liabilities relative to its asset base, which raises solvency concerns. However, it has no overdue filings and appears compliant with statutory requirements, providing some operational stability.

2. Key Concerns:

• High Long-Term Creditors: Creditors falling due after more than one year stand at £557,245 against net assets of only £27,226, indicating significant leverage and potential solvency risk if cash flows do not materialize as expected.
• Minimal Current Assets and Working Capital: Current assets total only £300 with current liabilities nearly 0 (£-557,245 is long-term, but current liabilities are not explicitly stated), but net current assets are positive at £660, indicating minimal liquidity buffer. This could create cash flow challenges.
• No Employees and Early Stage: Incorporated in January 2023 with zero employees reported for the period ending March 2024 suggests the company is very early in its operational lifecycle, which increases risk due to limited operational history and uncertain business sustainability.

3. Positive Indicators:

• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue filings or penalties.
• Fixed Asset Base: The company holds substantial fixed assets valued at £584,561, which may provide collateral or operational capacity depending on asset nature.
• Clear Ownership and Governance: Two directors and PSCs are clearly identified, with no adverse records, suggesting transparent governance.

4. Due Diligence Notes:

• Nature and Valuation of Fixed Assets: Investigate the composition and market value of the fixed assets to assess their liquidity and relevance to operations.
• Details of Long-Term Creditors: Understand the terms, counterparties, and repayment schedule of the £557,245 long-term creditors to evaluate refinancing and default risk.
• Business Plan and Revenue Model: Review management’s business plan given the early stage and lack of employees, to assess how the company intends to generate cash flows and service its liabilities.
• Cash Flow Projections: Obtain recent cash flow forecasts and bank statements to verify liquidity sufficiency.
• Related Party Transactions: Given the directors’ shared surname and address, clarify any related party transactions that might affect financial stability.