HYPHAE LEARNING LTD

Executive Summary

Hyphae Learning Ltd is an active micro private limited company incorporated in late 2023, currently showing significant solvency and liquidity risks as evidenced by its negative net current assets and shareholders’ funds. While compliant with filing obligations and clearly controlled by a single director-shareholder, the financial position suggests urgent attention is needed to address funding and operational viability. Further financial detail and strategic review are necessary to evaluate the company’s sustainability.

HYPHAE LEARNING LTD - Analysis Report

Company Number: 15199329

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: HIGH
   The company shows significant net current liability exceeding £84,000 against minimal current assets, indicating a severe solvency risk. The negative shareholders’ funds position so early in the company’s life cycle intensifies concerns about its financial stability.

2. Key Concerns:

• Solvency Risk: Current liabilities of £88,173 vastly outweigh current assets of £3,376, resulting in net current liabilities of £84,797. This suggests the company may not be able to meet its short-term obligations as they fall due.
• Negative Equity: Shareholders’ funds are negative by £84,797, indicating accumulated losses or undercapitalisation which is critical for a company incorporated less than two years ago.
• Limited Operational Scale: Only one employee (the director) and micro-entity reporting with no profit and loss information disclosed limit the ability to assess operational viability or revenue generation.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, demonstrating regulatory compliance and good governance in this respect.
• Clear Ownership and Control: The sole director and 75-100% shareholder, Mr. Jacob Robert Catling, provides clarity on control and accountability.
• Micro-entity Status: This reduces administrative burden and suggests a small-scale, potentially early-stage business.

4. Due Diligence Notes:

• Obtain detailed profit and loss statements and cash flow forecasts to understand income generation and liquidity management.
• Investigate the nature of the £88,000+ current liabilities (e.g., trade creditors, loans, director loans) and repayment terms.
• Assess plans for capital injection or debt restructuring to address negative equity and solvency concerns.
• Review business model and market strategy to determine operational sustainability given current financial deficits.
• Confirm absence of director disqualifications or regulatory issues beyond Companies House filings.