SW 1 HUB LIMITED

Executive Summary

SW 1 Hub Limited is a newly established micro private company operating in real estate. Its financials show very limited equity and tight liquidity, reflecting a fragile financial position. Credit approval is possible but should be conditional on improving equity and liquidity metrics, with close monitoring of cash flow and working capital management.

SW 1 HUB LIMITED - Analysis Report

Company Number: 13826817

Analysis Date: 2025-07-20 12:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SW 1 Hub Limited is an active private limited company engaged in real estate letting and trading. The company is very young, incorporated in early 2022, and categorized as a micro-entity. Financial data shows a modest net asset base (£1,854 as of July 2024) with minimal working capital (£2,935). While the business is not burdened by overdue filings or director concerns, the very low equity and narrow liquidity margin pose some credit risk. Approval is possible but should be conditional on the establishment of stronger equity cushions or external guarantees, given the fragile financial position and limited operational history.

2. Financial Strength:
   The balance sheet reveals minimal fixed asset detail but current assets rose substantially from £100 to £245,878 within the last year, matched by nearly equal current liabilities (£242,943). The net current asset position is positive but very tight, indicating limited buffer to meet short-term obligations. Shareholders’ funds have increased slightly to £1,854 but remain very low, reflecting either initial capital or retained earnings. The absence of significant tangible assets or reserves limits financial flexibility and resilience to shocks.

3. Cash Flow Assessment:
   Liquidity appears constrained due to the close parity between current assets and liabilities. The small net working capital (£2,935) suggests minimal room for operational disruptions or delays in receivables. The company’s micro status and short trading history make it difficult to assess cash generation trends comprehensively. Monitoring cash flow cycles, timely collection of receivables, and controlling payables will be critical to maintain solvency.

4. Monitoring Points:

• Track quarterly cash flow statements to ascertain operational cash generation and liquidity trends.
• Monitor any increases in tangible or intangible fixed assets to assess capital investment and asset backing.
• Watch for any increase in current liabilities that could strain working capital position.
• Observe shareholder equity changes, including potential capital injections or retained earnings growth.
• Keep review on directors’ compliance with filing deadlines and any changes in ownership or control.