BOULD INVESTMENTS LIMITED

Executive Summary

BOULD INVESTMENTS LIMITED presents a high risk profile primarily due to significant and increasing negative working capital and limited liquid resources relative to short-term liabilities. While the company is compliant with filing requirements and has shown a recent return to profitability, liquidity concerns and a weak equity base raise questions about its ability to meet obligations and sustain operations. Further investigation into debtors, investments, and financing strategies is recommended to clarify the company’s financial resilience.

BOULD INVESTMENTS LIMITED - Analysis Report

Company Number: 13181091

Analysis Date: 2025-07-19 12:56 UTC

1. Risk Rating: HIGH

Justification: The company shows a significant and worsening working capital deficit, with current liabilities far exceeding current assets by £501,875 as of the latest financial year. Despite modest net assets, the company has limited cash reserves (£35,045) relative to short-term obligations (£751,182), indicating potential liquidity stress. The business operates in property development, which typically requires substantial capital and stable financing, raising concerns about operational sustainability under these conditions.

2. Key Concerns:

• Liquidity and Solvency Risk: Persistent and growing negative net current assets (from -£273,955 to -£501,875) suggest the company may struggle to meet short-term liabilities as they fall due.
• Reliance on Debtors and Investments: A large portion of current assets includes debtors (£214,262 total) and investments (£522,041), which may not be readily convertible to cash, exacerbating liquidity concerns.
• Limited Equity and Capital Structure: Share capital remains nominal (£100), with shareholders’ funds barely above £20,000, reflecting limited buffer against losses and external shocks.

3. Positive Indicators:

• Compliance: The company is up to date with its filings, including accounts and confirmation statements, with no overdue deadlines noted.
• Profitability Improvement: After a substantial loss in 2022, the company reported a profit in the latest year, increasing retained earnings from £9,588 to £20,066.
• Director Stability: The sole director, Mr. Hugh Ralph Van Cutsem, has been in position since incorporation with no reported disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the nature and collectability of the £200,000 long-term debtor to understand its liquidity impact.
• Assess the valuation and liquidity profile of the investment portfolio (£522,041), including any market risks or restrictions on sale.
• Review the company’s financing arrangements and plans to address the significant short-term liability gap.
• Confirm any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Understand the business model and cash flow cycle in the development of building projects sector to evaluate operational sustainability.