POWERFAX OF HALIFAX LTD

Executive Summary

Powerfax of Halifax Ltd presents a financially stable profile typical of a micro-entity with strong net current assets and positive net asset growth. The company maintains good regulatory compliance and operational simplicity with two directors/employees. However, limited scale and a slight reduction in current assets warrant monitoring to ensure ongoing liquidity and operational resilience.

POWERFAX OF HALIFAX LTD - Analysis Report

Company Number: 13119959

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: LOW
   Powerfax of Halifax Ltd demonstrates a stable financial position for a micro-entity with adequate net current assets, no overdue filings, and a clean status. The company’s net assets and shareholders’ funds have remained positive and stable over recent years, indicating low immediate solvency or liquidity risk.

2. Key Concerns:

• Concentration Risk: The company has only two directors who are also the only employees, which may pose operational risks if either individual is unavailable.
• Limited Scale: As a micro-entity with minimal share capital (£100), the business may have limited financial flexibility or capacity to absorb shocks or take on larger projects.
• Declining Current Assets: Current assets decreased by approximately 15% from 2024 to 2025, which could signal tightening liquidity if the trend continues and is not offset by liabilities management.

3. Positive Indicators:

• Strong Net Current Assets: £82,587 net current assets at the latest year-end, showing sufficient working capital to meet short-term liabilities (£85,859 current liabilities vs. £168,446 current assets).
• Consistent Net Asset Growth: Net assets increased from £3,788 in 2021 to £86,912 in 2025, reflecting retained earnings or capital injections supporting solvency.
• Timely Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance.
• Low Employee Count with Stable Management: Two directors who are also employees, suggesting streamlined decision-making and low payroll overhead.

4. Due Diligence Notes:

• Verify the nature and terms of current liabilities to assess any seasonality or concentration that may affect liquidity.
• Examine the business model and revenue streams to confirm sustainability given the micro category and limited resources.
• Confirm if any external financing or guarantees exist that might impact financial stability.
• Assess any related party transactions or director loans given the small ownership and management group.
• Review any contingent liabilities or off-balance sheet commitments not disclosed in the micro-entity accounts.
• Investigate growth plans or capital needs that could stress the current financial base.