Company Number: 13268549

Analysis Date: 2025-07-29 15:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   HYHAB LIMITED is a very small property-related business (micro-entity, SIC codes indicating real estate buying/leasing) with limited operational scale and no employees. The company shows positive net assets and improved equity over the past three years, indicating a gradual build-up of capital. However, it carries a substantial long-term creditor balance (£135,000) equal to its fixed assets, suggesting loan or mortgage financing secured by property. The current liabilities are minimal (£6,000), and net current assets are positive, indicating some short-term liquidity. The credit approval is conditional on monitoring the servicing of the long-term debt and the company’s ability to generate sufficient cash flow from property operations or sales to meet obligations. Absence of turnover or profit data limits clarity on operational cash flow.

2. Financial Strength:
   The balance sheet shows a stable asset base with fixed assets consistently valued at £135,000 over four years, likely representing property holdings. Current assets have increased from £4.9k to £14k in the latest year, improving liquidity. Current liabilities are low at £6,000, resulting in positive net current assets (£8,004) and a strong working capital position relative to size. However, the company has significant creditors due after one year (£135,000), which may be secured debt related to the property. Net assets have improved from a negative position in 2021 (-£14) to positive £6,454 in 2024, reflecting retained earnings or capital injections. Overall, the balance sheet is sound for a micro company but leverage is concentrated in long-term debt.

3. Cash Flow Assessment:
   No detailed cash flow or profit & loss data is provided, which is typical for micro-entity filings. The increase in current assets and net current assets suggests modest improvement in short-term liquidity. The absence of employees and small current liabilities imply low operating expenses. However, the company’s ability to generate cash to service the substantial long-term debt is unclear without revenue or profit data. A key risk is reliance on property income or sale proceeds to meet creditor obligations. Monitoring cash collections, rental income, or asset disposals will be critical.

4. Monitoring Points:

• Servicing and repayment status of the £135,000 long-term creditor.
• Trends in revenue, profit, and cash flow once available (especially rental income or property sales).
• Changes in working capital and current liabilities levels.
• Any new borrowings or changes in debt structure.
• Timely filing of accounts and confirmation statements to detect operational or compliance issues.
• Market conditions in the real estate sector that may affect asset values or income.