Company Number: 14225688

Analysis Date: 2025-07-19 12:21 UTC

1. Credit Opinion: APPROVE with caution
   Info@Hendon Limited is a recently incorporated engineering-related technical consultancy showing positive net asset growth and solid working capital. The company maintains a clean filing record and has no adverse status. While it has no cash at year-end 2024, the debtor balance fully covers current liabilities. Given the company is in early stages with limited fixed assets and no employees currently reported, credit exposure should be moderate and short term. Approval is recommended with monitoring on cash flow and client payment performance.

2. Financial Strength:
   The balance sheet is modest but stable. Net assets increased from £6,841 in 2023 to £7,612 in 2024, indicating retained earnings growth. Fixed assets have reduced due to depreciation, now standing at £3,150. Current assets rose to £5,509, driven entirely by debtors, while cash declined to zero. Current liabilities decreased to £1,047, mainly corporation tax, with no director loans outstanding. Overall equity is robust for its size, providing a decent capital buffer.

3. Cash Flow Assessment:
   Liquidity is somewhat strained as cash reserves dropped from £3,692 to nil. However, debtors of £5,509 exceed current liabilities by a healthy margin, resulting in net current assets of £4,462. This implies working capital is sufficient but reliant on timely debtor collections. No employees on payroll currently reduces cash burn, but cash flow management is critical. The absence of cash at year-end warrants close attention.

4. Monitoring Points:

• Timely collection of debtors and conversion into cash
• Corporation tax payments and any changes in tax liabilities
• Client contract wins and revenue growth to improve cash generation
• Management’s ability to maintain low overheads and control costs
• Any changes in director loans or short-term borrowing