ASHBRIDGE HOLDINGS (YORKSHIRE) LIMITED

Executive Summary

Ashbridge Holdings (Yorkshire) Limited displays high financial risk due to significant negative working capital and reliance on related-party debt without formal repayment terms. While the company has valuable fixed assets and maintains regulatory compliance, its current liquidity and solvency position raise concerns about its ability to meet obligations and sustain operations. Further scrutiny of asset realizability, financing arrangements, and operational plans is essential before investment considerations.

ASHBRIDGE HOLDINGS (YORKSHIRE) LIMITED - Analysis Report

Company Number: 14472049

Analysis Date: 2025-07-20 17:25 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a significant net current liabilities position (-£563,374) with current liabilities vastly exceeding current assets. There is a material related-party creditor balance (£737,000) with no fixed repayment terms or interest, indicating reliance on shareholder funding. The company is newly incorporated with a short trading history and limited operational data.

2. Key Concerns:

• Liquidity Risk: Current liabilities of £741,119 dwarf current assets of £177,745, resulting in negative working capital, which raises concerns about the company’s ability to meet short-term obligations.
• Solvency Risk: Shareholders' funds stand at a very low £6,833 versus total liabilities; although fixed assets (freehold land) are reported at £570,207, the ability to realize value promptly is uncertain.
• Related Party Debt: A large amount (£737,000) is owed to a related party (Taste Tradition Limited) without interest or repayment terms, suggesting dependency on related-party financing, which may mask underlying cash flow issues.

3. Positive Indicators:

• Asset Base: The company holds tangible fixed assets in the form of freehold land valued at £570,207, which may provide collateral value.
• Compliance: All statutory filings appear to be up to date with no overdue accounts or confirmation statements.
• Ownership and Control: Clear control structure with directors also being the significant shareholders, which may facilitate decision-making and financial support.

4. Due Diligence Notes:

• Investigate the nature and valuation basis of the freehold land asset, including marketability and any encumbrances.
• Review the terms and sustainability of the related party loan from Taste Tradition Limited and assess the risk if this financing were withdrawn.
• Obtain cash flow forecasts and management accounts to evaluate operational performance and liquidity management beyond the balance sheet snapshot.
• Clarify plans for addressing the significant negative working capital and whether the company intends to raise external finance or restructure liabilities.
• Assess directors’ plans and strategies for business growth and profitability, given no employees reported and limited trading history.