SD HUSSEY LTD

Executive Summary

SD Hussey Ltd is a micro-entity with limited financial history showing growth in net assets but deteriorating liquidity. The company’s current working capital deficit and reliance on long-term creditors indicate moderate credit risk. Approval should be conditional with close monitoring of cash flow and operating results to ensure ongoing repayment capability.

SD HUSSEY LTD - Analysis Report

Company Number: 14253031

Analysis Date: 2025-07-20 14:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SD Hussey Ltd is a very young micro-entity operating in motion picture production. While the company is active and compliant with filing deadlines, its financials show mixed signs. The net assets and shareholders’ funds improved from £1,945 in 2023 to £7,769 in 2024, indicating some growth in equity. However, the liquidity position deteriorated significantly in 2024 with net current liabilities of £12,959, down from net current assets of £1,945 the prior year. This weak working capital position suggests potential short-term cash flow constraints. The company also carries £8,973 of long-term creditors. Given the limited financial history and modest scale, credit facilities should be granted cautiously, contingent on close monitoring of cash flow and operating performance.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£29,701) and a small but positive net asset base (£7,769). The increase in net assets year-on-year is positive but remains low in absolute terms. The presence of long-term liabilities (£8,973) introduces leverage risk at this scale. Overall, the company’s financial strength is fragile but not yet critical. The micro-entity status limits disclosure, and no profit & loss data is available, restricting full analysis of profitability and retained earnings.

3. Cash Flow Assessment:
   The current asset base shrank from £44,454 in 2023 to £15,510 in 2024 while current liabilities remain elevated at £28,469. This shift to a net current liability position indicates potential liquidity stress and working capital shortfall. The company employs only one staff member, suggesting low fixed overheads, but operational cash generation capacity is unclear. Without detailed profit & loss data and cash flow statements, the ability to meet short-term obligations depends heavily on creditor terms and timely revenue collection.

4. Monitoring Points:

• Liquidity trends and working capital improvements in subsequent periods
• Ability to meet short-term creditor obligations without delays or renegotiations
• Profitability and cash flow generation once full accounts including P&L are available
• Any changes in long-term debt or creditor structure that could impact solvency
• Continued compliance with filing deadlines and absence of director issues