HYLUX LIMITED

Executive Summary

Hylux Limited’s current financial position is weak, with negative net assets and poor liquidity, reflecting an early stage company with limited trading history. Credit facilities are not recommended until the company demonstrates improved capitalisation and cash flow stability. Ongoing monitoring of financial performance and capital structure is essential before reconsidering credit exposure.

HYLUX LIMITED - Analysis Report

Company Number: 14836376

Analysis Date: 2025-07-29 16:18 UTC

1. Credit Opinion: DECLINE
   Hylux Limited is a recently incorporated micro-entity with significant net liabilities (£14,732) and negative net current assets (-£13,772) as of the latest reporting date. The company has only one employee and no indication of revenue or profitability yet. The financial position shows no buffer to meet short-term obligations, indicating weak payment capacity. Given the negative equity and absence of trading history, the risk of default is high. Without evidence of incoming cash flow or capital injection, extending credit would be imprudent.

2. Financial Strength:
   The balance sheet reflects a weak financial structure. Negative net assets and net current assets mean the company is insolvent on a going-concern basis at the reporting date. Fixed assets were not reported, and current liabilities exceed current assets significantly. Shareholders funds are negative, showing accumulated losses or initial capital deficits. The company’s micro-entity status and short operating history limit detailed financial disclosure, restricting deeper analysis.

3. Cash Flow Assessment:
   The negative current assets balance (likely overdraft or creditor netting) and low current liabilities suggest minimal liquidity. No cash or equivalents reported, and accruals/deferred income of £960 further indicate obligations not yet fulfilled. With only one employee, working capital needs may be limited, but the lack of cash resources signals potential cash flow constraints. The company likely depends on director funding or third-party capital for liquidity.

4. Monitoring Points:

• Monitor future filed accounts for improvement in net assets and positive working capital.
• Watch for any capital injections or director loans improving liquidity.
• Review trading performance and evidence of revenue generation.
• Track payment history to suppliers and creditors to gauge operational resilience.
• Director’s continued involvement and any new appointments indicating governance changes.