C&DM ESTATES LIMITED

Executive Summary

C&DM Estates Limited is a recently incorporated property investment company with a significant asset base in investment property but faces high liquidity and solvency risks due to substantial short- and long-term liabilities exceeding current assets and minimal equity. The company relies on director financing and has no overdue statutory filings, but further investigation into debt terms and cash flow sustainability is critical for assessing operational stability and financial health.

C&DM ESTATES LIMITED - Analysis Report

Company Number: 14416425

Analysis Date: 2025-07-29 18:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with current liabilities far exceeding current assets and minimal net assets. The high level of non-current liabilities nearly matches total assets, and shareholder funds are nominal, indicating elevated financial risk.

2. Key Concerns:

• Negative net current assets (-£70,297): Current liabilities of £73,160 vastly outweigh cash of only £2,863, indicating potential short-term liquidity stress.
• High long-term liabilities (£199,875) relative to asset base (£271,992): The company carries substantial debt, with only marginal net equity (£1,440), raising questions about long-term solvency.
• Dependence on director’s loan (£71,660): A significant portion of creditors is owed to the director interest-free and repayable on demand, suggesting informal financing that may not be sustainable or secure.

3. Positive Indicators:

• Investment property assets valued at £271,992: The company holds tangible investment property assets, which represent a potentially appreciating asset base.
• No overdue filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Single controlling shareholder/director: Simplifies governance and control, which may allow for swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the £199,875 long-term creditors to understand repayment obligations and covenants.
• Review cash flow forecasts and funding arrangements to assess the company’s ability to meet current liabilities and service debt.
• Verify the valuation method and market comparability for the investment property to confirm asset realizable value.
• Assess director’s loan terms and potential risks related to its recall or refinancing.
• Confirm the company’s operational model and revenue generation since turnover details are not disclosed; understand sustainability of rental income.