Investment Risk Analysis: BERKELEY WESTON LIMITED

1. Risk Rating: MEDIUM

The company presents a mixed risk profile. While the balance sheet shows strong growth and a seemingly healthy net asset position of £247,630, nearly half of total assets (£180,000 or 49%) comprise a loan to an associated company that is explicitly disclosed as "not currently trading." This concentration in a potentially impaired asset introduces material uncertainty regarding the true recoverable value of the company's position. Offsetting this concern are consistent profitability indicators, a strong cash balance, and a 20-year operating history with unbroken compliance.

2. Key Concerns

Concern 1: Associated Company Loan – Impairment Risk The single largest risk is the £180,000 classified as "Current investments," which Note 4 discloses as "monies loaned to Associated Company who are not currently trading." This represents 49% of total assets and 73% of net assets. If this loan is ultimately written off or impaired, the company's net asset position would deteriorate from £247,630 to approximately £67,630 — a 73% reduction. The associated company's non-trading status raises serious questions about the recoverability of this inter-company exposure and whether adequate provisioning has been applied.

Concern 2: Limited Financial Transparency The company files unaudited abridged accounts under the small companies regime and has elected not to file a profit and loss account. This means revenue, cost of sales, operating margins, and the composition of the £120,543 current liabilities are opaque. The dramatic cash increase from £37,865 (2024) to £178,200 (2025) — a 371% rise — cannot be fully contextualized without understanding whether this stems from trading activity, asset disposals, or other movements. The absence of a P&L statement significantly limits analytical depth.

Concern 3: Business Nature and Regulatory Exposure The company traded as "CONSUMER CLAIMS SERVICE LIMITED" until October 2009, suggesting historical involvement in claims management activities. The UK claims management sector has faced significant regulatory scrutiny, particularly following FCA oversight changes. While the current SIC code (74909 — other professional activities) is deliberately broad, the prior name raises questions about whether legacy regulatory liabilities or reputational issues persist.

3. Positive Indicators

Strong and Consistent Net Asset Growth The company has demonstrated a remarkable growth trajectory. Net assets have increased from £12,284 (2017) to £247,630 (2025), representing approximately a 20-fold increase over eight years. This sustained growth pattern suggests a viable and profitable underlying business.

Healthy Cash Position Cash at bank stands at £178,200, representing 48% of total assets. Even excluding the £180,000 associated company loan, the cash alone exceeds total current liabilities (£120,543) by a comfortable margin, providing a 1.48x cash coverage ratio. This suggests the company is not facing immediate liquidity pressure.

Exemplary Filing Compliance The company has no overdue filings across either accounts or confirmation statements. With a 20-year incorporation history and consistent annual filings, this indicates disciplined governance and reduces regulatory risk concerns.

Stable Operational Footprint The company has maintained a consistent headcount of 6 employees across both 2024 and 2025, suggesting operational stability rather than rapid expansion or contraction that might indicate business model stress.

4. Due Diligence Notes