HDC TRADERS LIMITED

1. Risk Rating: MEDIUM

Brief justification: The company is active, not subject to insolvency proceedings, and its statutory filings are not overdue. However, net assets are minimal at £1,076, all reported assets are current, no turnover or profitability data is provided, and the balance sheet shows no movement between the two most recent financial years. These factors indicate limited financial resilience.

2. Key Concerns

• Minimal solvency buffer: Net assets of £1,076 provide a small cushion against current liabilities of £5,713. A modest adverse trading period could erode shareholders’ funds entirely.
• Absence of profitability data: The available financial history contains balance sheet figures only. Without turnover, gross margin, or operating profit, it is not possible to determine whether the business is generating sustainable cash from operations.
• Ownership and operational concentration: A single person with significant control holds more than 75% of shares and voting rights, and the officers list shows a sole current director. Employee numbers fell from six to four between 2024 and 2025, suggesting reduced operational capacity.

3. Positive Indicators

• The company is active with no liquidation, administration, or receivership proceedings.
• Accounts and confirmation statement filings are not overdue.
• Net current assets are positive at £1,076, and current assets exceed current liabilities.
• The company has been incorporated since April 2019 and has filed accounts for multiple periods.

4. Due Diligence Notes

• Request a detailed breakdown of current assets (cash, debtors, work in progress) and current liabilities (trade creditors, accruals, taxation, any director’s loan accounts).
• Obtain management accounts or profit and loss statements to assess revenue trends and profitability.
• Verify the accounts filing deadline; the data shows a next due date of 31 January 2027 despite a last made-up date of 30 April 2025, which may require clarification.
• Confirm whether the registered address at an accountancy practice in Leeds reflects the actual trading location.
• Seek an explanation for the identical balance sheet totals reported for the years ending 30 April 2024 and 30 April 2025.
• Assess customer concentration, contract pipeline, and competitive position within specialised cleaning services.