CAMBRIDGE PRIME DEVELOPMENTS LTD

Executive Summary

Cambridge Prime Developments Ltd, incorporated in 2023 and classified as a micro-entity, currently shows a negative net asset position driven by significant long-term liabilities. While regulatory compliance is up to date and the company benefits from a controlling parent entity, the high level of debt and insolvency indicators present a high risk profile. Further investigation into debt structure and operational cash flows is essential to assess the company’s viability and funding sufficiency.

CAMBRIDGE PRIME DEVELOPMENTS LTD - Analysis Report

Company Number: 14721408

Analysis Date: 2025-07-20 14:48 UTC

1. Risk Rating: HIGH

The company exhibits a negative net asset position (£-9,250) indicating insolvency on a balance sheet basis. Significant long-term liabilities (£2,673,382) exceed total assets, raising solvency concerns. The financials also show a large sum classified as current assets (£2,666,797) but current liabilities are minimal on the face of the accounts, which is inconsistent with the large creditors after more than one year, suggesting long-term debt reliance.

2. Key Concerns:

• Negative shareholders' funds and net assets indicate the company is currently insolvent and dependent on external funding to meet liabilities.
• The substantial amount of creditors falling due after more than one year implies significant debt obligations that may pressure cash flow and liquidity.
• Limited financial history (only one year since incorporation) restricts trend analysis and increases uncertainty about operational stability.

3. Positive Indicators:

• The company is current on all statutory filings with no overdue accounts or confirmation statements, suggesting compliance with regulatory requirements.
• The business is classified as a micro-entity, implying a small scale which may limit exposure to large operational risk.
• The directors are established individuals with clear appointments and the company has a clearly identified controlling entity (Cambridge Prime Ltd) owning 75-100%, potentially providing ongoing backing.

4. Due Diligence Notes:

• Investigate the nature and terms of the £2.67m creditors due after more than one year to assess refinancing risk and repayment plans.
• Review cash flow projections and funding arrangements to understand how the company intends to resolve its negative equity and meet liabilities.
• Obtain management accounts or interim reports to evaluate current operational performance and progress since initial incorporation.
• Confirm the relationship and financial support from the parent company Cambridge Prime Ltd to assess group-level stability.