ATLANTIC VIEW CARE HOME LIMITED

Executive Summary

Atlantic View Care Home Limited exhibits a high-risk financial profile marked by severe negative working capital and shareholders’ funds, placing solvency and liquidity under significant pressure. While the company maintains regulatory compliance and benefits from group ownership, the substantial intra-group liabilities and lack of operational scale raise concerns over sustainability. Further detailed due diligence on group funding support and operational viability is advised before considering investment.

ATLANTIC VIEW CARE HOME LIMITED - Analysis Report

Company Number: SC680624

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: HIGH
   The company's financial statements reveal significant and increasing net current liability and negative shareholders' funds, indicating substantial solvency risk. The magnitude of current liabilities relative to current assets and cash on hand suggests liquidity concerns.

2. Key Concerns:

• Severe Negative Working Capital: The net current liabilities have grown from -£945 (2022) to -£69,835 (2023), highlighting a deteriorating liquidity position.
• Negative Shareholders’ Funds: The equity position is deeply negative at -£69,935 (2023), reflecting accumulated losses and potential insolvency risk.
• Related Party Creditors: All current liabilities appear to be amounts owed to group undertakings (£71,368 in 2023), which may mask cash flow issues and dependency on group funding that may not be sustainable long term.

3. Positive Indicators:

• Active Status and Current Filings: The company is active with no overdue accounts or confirmation statements, demonstrating regulatory compliance in filing timelines.
• Clear Ownership Structure: Control by a group entity (Ayrshire Care Homes Limited) owning 75-100% shares gives potential access to group support.
• Industry Focus: Operating in residential care for elderly and disabled, a sector with ongoing demand, suggesting operational relevance if financial stability is restored.

4. Due Diligence Notes:

• Investigate the nature and terms of the amounts owed to group undertakings to understand repayment obligations and funding arrangements.
• Review cash flow forecasts and management plans to address the worsening liquidity and solvency position.
• Examine reasons for the recent director changes at the end of 2023 and any impact on governance or strategic direction.
• Confirm whether the company is trading or currently dormant given zero employees reported and minimal operational data.
• Assess any contingent liabilities or off-balance-sheet exposures not disclosed in the limited accounts.