YORKSHIRE HIDEOUT SPA LIMITED

Executive Summary

Yorkshire Hideout Spa Limited is currently in a weak financial position characterized by negative equity, significant liabilities, and poor liquidity. The company’s ability to service debt and meet short-term obligations is doubtful without improved cash flows or debt restructuring. Given these factors, credit facilities are not recommended at this time without substantial mitigation measures.

YORKSHIRE HIDEOUT SPA LIMITED - Analysis Report

Company Number: 12991417

Analysis Date: 2025-07-20 17:00 UTC

1. Credit Opinion: DECLINE
   Yorkshire Hideout Spa Limited demonstrates significant financial distress with negative shareholders’ funds of £192,346 and net current liabilities of £411,137 as of the latest financial year ending November 2023. The company’s liabilities, particularly directors’ loans (£405,719) and bank loans (£377,910), heavily outweigh current assets and net assets, indicating an inability to comfortably service debt or meet short-term obligations. The lack of profitability and negative equity position suggests poor financial stewardship and limited resilience to economic downturns. Without a clear plan for debt reduction or evidence of improved cash generation, credit risk is high.

2. Financial Strength:
   The company holds substantial fixed assets (£596,701) in the form of land and property, which may offer collateral value. However, these tangible assets are overshadowed by high liabilities, including significant bank loans and directors’ loans. The negative net assets position and deteriorating net current assets (from -£334,578 in 2022 to -£411,137 in 2023) highlight ongoing liquidity challenges. The company’s balance sheet reflects a weak capital structure with negative equity and high gearing, undermining financial stability.

3. Cash Flow Assessment:
   Current assets are minimal (£11,939), with cash balances at only £7,400, insufficient to cover current liabilities of £423,076. The negative working capital position points to liquidity strain and a potential risk of default on short-term obligations. The company has no recorded operating cash flows or profitability from the accounts provided and relies heavily on external funding (directors’ loans and bank loans). This reliance raises concerns about the sustainability of operations and cash flow sufficiency to meet debt servicing needs.

4. Monitoring Points:

• Track quarterly liquidity metrics, especially cash on hand versus current liabilities.
• Monitor any changes in directors’ loan balances and bank loan repayment schedules.
• Assess management actions to improve profitability or restructure debt.
• Watch for any overdue filings or signs of financial distress such as creditor pressure or legal actions.