Company Number: 14812420

Analysis Date: 2025-07-29 14:14 UTC

1. Risk Rating: HIGH
   AWD Property Limited exhibits a high risk profile based on the current financial data. The company shows significant net current liabilities and negative shareholders’ funds shortly after incorporation, which raises concerns about its solvency and liquidity.

2. Key Concerns:

• Negative Net Current Assets: The company’s net current assets are substantially negative at £-420,294, indicating current liabilities far exceed current assets. This suggests potential liquidity difficulties in meeting short-term obligations.
• Negative Shareholders’ Funds: Shareholders’ funds stand at £-37,801, reflecting accumulated losses or funding deficits which undermine the company’s capital base and solvency.
• Heavy Reliance on Borrowings: Current liabilities include bank loans and overdrafts totaling £233,061, a large portion of total liabilities, increasing financial risk, especially given limited cash reserves (£3,520).

3. Positive Indicators:

• Fixed Assets Holding: The company holds tangible fixed assets valued at £382,593, likely real estate given the SIC code (68209), which provides a material asset base that may support future operations or refinancing.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with statutory requirements and good governance in terms of regulatory filings.
• Experienced Directors with Control: Two directors who are also the main shareholders have full control, which can enable prompt decision-making and strategic alignment.

4. Due Diligence Notes:

• Investigate the nature and terms of the £233,061 bank loans and overdrafts, including repayment schedules, covenants, and security arrangements against the fixed assets.
• Review the company’s business plan and cash flow forecasts to assess how it intends to address the significant working capital deficit and achieve operational sustainability.
• Confirm the valuation and marketability of the fixed assets to understand if they can be leveraged or sold to improve liquidity.
• Understand the reason for the significant current liabilities shortly after a recent incorporation date, including any related party transactions or upfront financing arrangements.
• Clarify whether any related party loans or guarantees are in place, considering the directors hold significant ownership and voting control.