BURWASH FHR LLP

Executive Summary

Burwash FHR LLP exhibits significant financial risk characterized by a net liability balance sheet and minimal cash reserves against high short-term liabilities, indicating potential solvency and liquidity challenges. Although regulatory compliance is maintained and member support is acknowledged, the company’s operational viability remains unclear due to the absence of employees and income statement data. Further due diligence is necessary to understand the sustainability of member loans and the company’s business model.

BURWASH FHR LLP - Analysis Report

Company Number: OC444987

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: HIGH
   The company shows a net current asset position of zero, with current assets exactly matching current liabilities (£2,109,869). Furthermore, cash held is negligible (£1,033), implying limited immediate liquidity. The company also reports net liabilities attributable to members, indicating insolvency on a balance sheet basis.

2. Key Concerns:

• Liquidity Risk: Minimal cash reserves (£1,033) compared to substantial short-term liabilities (£2.1M) suggest cash flow constraints that could jeopardize meeting obligations on time.
• Solvency Risk: Net current assets of zero and total net liabilities indicate the company is technically insolvent, raising concerns about its ability to continue as a going concern without external support.
• Reliance on Member Loans: Significant short-term loans from members and related parties (over £1.7M) indicate dependency on intra-group or shareholder funding, which may not be sustainable or guaranteed.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are up to date, indicating compliance with filing requirements and regulatory obligations.
• Recent Incorporation with Clear Governance: The company is newly formed (Dec 2022) with clearly identified designated members and PSCs, showing transparency in control and governance.
• Going Concern Statement: The accounts note that the business is prepared on a going concern basis supported by member backing, which may provide some stability if the members continue support.

4. Due Diligence Notes:

• Review the nature and terms of the substantial loans from members and third parties (LendNet, INDF4 Investments, TriplePoint) to assess repayment schedules, interest obligations, and enforceability.
• Investigate the company’s business model and revenue generation capacity, as the accounts do not show an income statement and the company has no employees, raising questions about operational viability.
• Confirm the extent and realism of members’ financial support given the net liability position and the company’s statement on going concern.
• Examine any contingent liabilities or off-balance sheet obligations that may exacerbate the financial position.
• Assess the company’s strategic plan for improving liquidity and solvency given the current financial snapshot.