HYPERION ENERGY LIMITED

Executive Summary

HYPERION ENERGY LIMITED’s financial position has deteriorated markedly in the latest year with net assets dropping by over 90% and liquidity under pressure. The company’s current liabilities exceed current assets, signaling short-term cash flow stress. Given the weak balance sheet and limited financial transparency, new credit facilities are not advisable at this stage without significant improvement in financial metrics and reporting. Close monitoring of liquidity and working capital is essential going forward.

HYPERION ENERGY LIMITED - Analysis Report

Company Number: 14334477

Analysis Date: 2025-07-29 17:51 UTC

1. Credit Opinion: DECLINE
   HYPERION ENERGY LIMITED exhibits a significant deterioration in financial health over the past year. Net assets have plunged from £130,596 in 2023 to just £9,406 in 2024, largely driven by a sharp increase in current liabilities (£110,674 from £94,375) and a reduction in current assets (£94,966 from £188,555). This decline suggests emerging liquidity and solvency risks. The company’s ability to service debt and meet short-term obligations is questionable given the negative net current assets position in 2024 (£-15,708). The lack of audit and limited disclosures due to micro-entity status further constrain transparency. Directors’ professional backgrounds as engineers do not provide clear evidence of strong financial stewardship. Given these risks and the company’s short operating history (incorporated 2022), approval of new credit facilities is not recommended without substantial financial improvement and enhanced reporting.

2. Financial Strength:
   The balance sheet shows a weakening capital base. Fixed assets have declined by approximately 25% (£76k to £57k), possibly due to disposals or impairments. Current liabilities have increased disproportionately to current assets, reversing the previous year's strong working capital position (£94k positive to £15k negative). Long-term creditors remain significant at £32k. The net asset base is barely positive, indicating minimal equity buffer to absorb losses. Overall, the company is financially fragile with a high gearing level relative to equity.

3. Cash Flow Assessment:
   Cash was reported at £92k in 2023 but is not separately disclosed in 2024 accounts, implying it may have been depleted. The sharp reduction in current assets combined with rising short-term creditors raises concerns over liquidity and working capital management. Negative net current assets indicate potential difficulties in meeting immediate liabilities from operational cash flow. Without detailed cash flow statements, it is difficult to confirm, but trends suggest stressed liquidity and potential reliance on external funding or director loans.

4. Monitoring Points:

• Monitor quarterly cash flow and liquidity ratios closely, especially current ratio and quick ratio.
• Watch for improvements in net current assets and reduction of short-term creditors.
• Track any changes in directors’ financial commitments or external financing arrangements.
• Review any updates to accounting policies or disclosures that could affect transparency.
• Observe employee count and operational scale for signs of business contraction or expansion.