H&C TV LIMITED

1. Risk Rating: HIGH

The company presents a high-risk profile driven by severe negative working capital, minimal cash reserves, and recurring losses that have substantially eroded equity. While the balance sheet remains technically solvent with positive net assets of £423,424, this cushion is thin and heavily dependent on intangible asset valuations and continued support from related parties. The liquidity position is weak, with current liabilities exceeding current assets by £3,057,481.

2. Key Concerns

• Liquidity and Solvency Pressure: As at 31 December 2024, current liabilities of £4,111,989 exceeded current assets of £1,054,508, resulting in net current liabilities of £3,057,481 (2023: £2,519,849). Cash at bank was only £21,261 (2023: £30,138). The company appears reliant on creditor forbearance or shareholder support to meet short-term obligations.
• Erosion of Equity and Recurring Losses: Retained earnings show an accumulated deficit of £14,663,066 (2023: £13,896,607). Net assets have declined from £2,276,621 in 2022 to £889,883 in 2023 and £423,424 in 2024. Based on retained earnings movements, the company incurred losses of approximately £1.39M in 2023 and £0.77M in 2024. Continued losses could eliminate the remaining equity buffer.
• Asset Quality and Recoverability: Intangible assets of £3,635,444 represent 77% of total assets. This includes goodwill of £2,932,241 following a reclassification of £3,086,570 from fixed asset investments to goodwill during 2024. The rationale and valuation of this reclassification warrant scrutiny. Additionally, debtors include £655,825 owed by group undertakings and £203,029 for called up share capital not paid, both of which may not be readily realisable.

3. Positive Indicators

• Active Status and Filing Compliance: The company is active, not in liquidation, and the provided data indicates accounts and confirmation statements are not overdue (though filing dates should be verified).
• Shareholder Support: Substantial share capital of £14,750,789 and share premium of £335,701 indicate significant historical capital contributions, suggesting shareholder commitment.
• Operational Activity: Employee headcount increased from 23 in 2023 to 27 in 2024, indicating ongoing business operations.
• No Insolvency Events: No liquidation, administration, or director disqualification records were identified in the provided data.

4. Due Diligence Notes

• Obtain the full accounts including the profit and loss account, cash flow statement, and complete notes to creditors. The provided accounts text is truncated at trade creditors of £494,398, omitting the full breakdown of the £4,111,989 current liabilities.
• Clarify the £3,086,570 reclassification from fixed asset investments to goodwill: understand the business rationale, valuation basis, and future amortisation impact on profits.
• Assess the recoverability of £655,825 owed by group undertakings and £203,029 called up share capital not paid. Investigate the financial health of group companies and any intercompany support agreements.
• Review the terms of bank loans and overdrafts (£58,849) and other loans (£44,214), including covenants, interest rates, and repayment schedules.
• Verify current directors and the PSC register. The accounts list R G Xxxxxxxname shown to subscribers as a director, but the officers list does not include him. The PSC entries for Xxxxxx Xxxxxxxxname shown to subscribers are inconsistent, showing both 50–75% and >75% ownership/voting rights.
• Check for charges or mortgages registered against company assets.
• Review going concern disclosures and any post-balance sheet events.
• Confirm filing dates with Companies House: the next accounts due date of 2026-12-31 and confirmation statement last made up to 2026-09-23 appear unusual relative to the current date and should be verified.

This analysis is based on limited public data and is not a substitute for professional accounting or legal advice.

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