BLOCK C 9 THE UPPER DRIVE LIMITED

Executive Summary

The company, incorporated in late 2023, shows a high risk profile primarily due to negative net assets and a significant working capital deficit. While holding an investment property asset and maintaining compliance with filing requirements are positives, the absence of operational history and large short-term liabilities pose serious concerns regarding liquidity and solvency. Further investigation into liabilities, cash flows, and the business model is essential before considering investment.

BLOCK C 9 THE UPPER DRIVE LIMITED - Analysis Report

Company Number: 15219118

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by net liabilities and negative working capital shortly after incorporation.

2. Key Concerns:

• Negative Net Assets: With net liabilities of £26,577 and shareholders’ funds negative by the same amount, the company is insolvent on a balance sheet basis.
• Severe Working Capital Deficit: Current liabilities of £112,375 vastly exceed current assets of £1, resulting in a net current liability position of £112,374, which indicates acute short-term liquidity stress.
• Newly Incorporated with Limited Operational History: Incorporated in October 2023 with accounts covering just over one year, the company’s financial sustainability and operational viability remain unproven.

3. Positive Indicators:

• Investment Property Asset: The company holds an investment property valued at £85,797, which could potentially be leveraged or sold to improve financial standing.
• No Overdue Filings: The company has complied with its filing deadlines for both accounts and confirmation statements, indicating adherence to regulatory requirements.
• Clear Ownership and Governance: Three directors and three PSCs, all from the Addison family, providing transparent control structure.

4. Due Diligence Notes:

• Nature of Current Liabilities: Investigate the composition and maturity of the £112,375 current liabilities to assess immediate repayment obligations and any related party transactions.
• Cash Flow and Funding Sources: Review cash flow forecasts and sources of finance to understand how the company plans to meet its liabilities and fund operations.
• Valuation and Marketability of Investment Property: Confirm the basis and reliability of the £85,797 investment property valuation and assess its liquidity in the current market.
• Business Model and Revenue Generation: As a residents property management company with minimal turnover disclosed, evaluate contracts, client base, and revenue streams to gauge operational stability.
• Director Backgrounds: Conduct checks on directors for any previous insolvency or disqualification records despite none being indicated here.