S & H INVEST LIMITED

Executive Summary

S & H INVEST LIMITED exhibits significant solvency and liquidity concerns, highlighted by negative net assets and a large working capital deficit. While regulatory compliance is maintained and fixed assets provide some backing, the company's operational sustainability is questionable given the minimal current assets and employee base. Further detailed financial and operational due diligence is recommended to assess risks thoroughly.

S & H INVEST LIMITED - Analysis Report

Company Number: 13487989

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

1. Risk Rating: HIGH
   Justification: The company's financial position shows persistent net liabilities and negative shareholders' funds, with current liabilities significantly exceeding current assets, indicating potential solvency and liquidity risks.

2. Key Concerns:

• Solvency Risk: The company has net liabilities of £20,216 as of July 2024, worsening from previous years, and total creditors due after one year remain high at £265,323, which may strain long-term solvency.
• Liquidity Concerns: Current assets are negligible (£148 in 2024) compared to current liabilities (£71,516), resulting in a substantial working capital deficit, suggesting potential cash flow difficulties in meeting short-term obligations.
• Operational Stability: The company has only one employee on average and minimal current assets, with no indication of profitability or cash generation, raising questions about ongoing operational sustainability.

3. Positive Indicators:

• Compliance: No overdue filings are noted for accounts or confirmation statements, indicating good regulatory compliance so far.
• Ownership Stability: Control is clearly defined with multiple PSCs holding significant shares and voting rights, potentially providing stable governance and decision-making.
• Asset Base: The company holds fixed assets valued at £317,025 consistently over the years, which may offer some collateral value or operational utility.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£265,323) to assess repayment obligations and potential refinancing risks.
• Review cash flow statements or management accounts (if available) to understand liquidity management and operational cash inflows/outflows.
• Clarify the business model and revenue streams given the micro-entity status and limited employee base to evaluate sustainability.
• Confirm whether the fixed assets are income-generating or impaired, and assess any contingent liabilities or off-balance-sheet obligations.
• Validate related party transactions or intercompany loans, considering the overlap between directors and significant controllers.