HOHO PROPERTIES LIMITED

1. Credit Opinion: DECLINE

The company reports negative shareholders’ funds of £68,808 as at 31 January 2026 and has carried a deficit on shareholders’ funds in each of the last five financial years. Current liabilities of £432,143 exceed current assets of £25,698 by £406,445, leaving cash of only £215 at the year end. The balance sheet is heavily dependent on loans from related parties, and the principal fixed asset—an investment property carried at £335,871—is already subject to fixed charges in favour of connected and third parties, limiting available security for a senior lender. No profit and loss account has been filed, so trading performance and debt service capacity cannot be verified. On the filed evidence, the company does not meet normal criteria for an unsecured credit facility.

Any future consideration would require unencumbered security, external guarantees, and a demonstrable repayment plan, none of which are evident from the current filings.

2. Financial Strength

• Net worth: Negative shareholders’ funds of £68,808 (2026), compared with -£8,755 in 2022. The deficit widened materially between 2022 and 2025 before a partial reduction in 2026, but equity remains deeply negative.
• Asset base: Total assets of £363,435 are dominated by investment property of £335,871 held at cost, which is a departure from FRS 102 fair value requirements. Tangible fixed assets are minimal at £1,866. Values are unverified and may not reflect market realisable value.
• Liabilities: Creditors falling due within one year total £432,143. A material portion comprises intercompany loans from entities associated with the director, including £171,600 owed to HO Property 3 Ltd, £77,971 to HO Property Ltd, and £46,579 to HO Property 5 Ltd. These related party balances could be called upon at short notice.
• Capital: Issued share capital is only £100, providing no external equity cushion.
• Filing status: Accounts are unaudited and abridged under the small companies regime; the profit and loss account has not been delivered to the registrar.

3. Cash Flow Assessment

• Liquidity: Cash at bank fell from £6,447 (2025) to £215 (2026), indicating extremely thin liquidity headroom.
• Working capital: Net current liabilities of £406,445 imply the company cannot meet short-term obligations from current assets. The current ratio is approximately 0.06.
• Debtors: Debtors increased to £25,483 from £4,005. Without a profit and loss account or debtor ageing, recoverability and credit terms cannot be assessed.
• Cash flow: No cash flow statement is available. Operating cash generation and debt service capacity are unknown.
• Funding dependency: Continued operations appear reliant on continued forbearance or further advances from related parties rather than internal cash generation.

4. Monitoring Points

• Trend in shareholders’ funds and whether the negative equity position deepens.
• Cash balance and ability to meet obligations as they fall due.
• Movements in related party creditor balances, including any demands for repayment or enforcement of existing charges.
• Priority and extent of existing fixed charges over the investment property before any new lending is considered.
• Recoverability and ageing of debtors, particularly intercompany balances.
• Timeliness of future accounts and confirmation statement filings.
• Any County Court judgments, winding-up petitions, or other insolvency events.
• Receipt of management accounts or a profit and loss account to verify trading performance and repayment capacity.