WILLIAM HICKS LTD

Executive Summary

William Hicks Ltd shows a generally solvent position with positive equity and compliant filings. However, liquidity appears constrained given the shrinking net current assets, and the business is closely held by a single individual, posing governance concentration risk. Further review of cash flow and director loans is recommended to ensure operational sustainability.

WILLIAM HICKS LTD - Analysis Report

Company Number: 12384106

Analysis Date: 2025-07-29 15:50 UTC

1. Risk Rating: LOW to MEDIUM
   William Hicks Ltd presents low to medium financial risk based on its micro-entity status and recent financials. The company maintains positive net assets and net current assets, indicating solvency. However, the relatively small scale of operations and modest asset base suggest some vulnerability to cash flow fluctuations or external shocks.

2. Key Concerns:

• Liquidity Tightness: The net current assets have decreased significantly from £6,238 in 2021 to just £434 in 2024, signaling reduced short-term liquidity buffer.
• Small Share Capital: Share capital is minimal (£1.00), which may limit financial flexibility and investor confidence.
• Concentration of Control: Mr William Hicks holds 75-100% voting rights and significant control, which may raise governance and succession concerns.

3. Positive Indicators:

• Consistent Positive Equity: Shareholders’ funds have remained positive and increased from £55 in 2020 to £3,189 in 2024.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating regulatory compliance.
• Stable Director and Secretary Appointment: Directors and secretary are current with no reported disqualifications, supporting operational stability.

4. Due Diligence Notes:

• Investigate the causes behind the sharp reduction in net current assets and assess cash flow projections to confirm liquidity resilience.
• Review director loan account details (£2,132 owed by director), including repayment terms and impact on working capital.
• Confirm business activities under SIC codes 73110 (advertising agencies) and 43999 (other specialised construction activities) for revenue diversification and risk.
• Assess any contingent liabilities or off-balance sheet commitments not disclosed in micro-entity accounts.