CHURCHDALE COURT FREEHOLD LIMITED

Executive Summary

Churchdale Court Freehold Limited exhibits a high risk profile due to persistent negative net assets and absence of revenue or operational activity, raising solvency and liquidity concerns. While regulatory compliance is maintained and ownership is concentrated, the lack of income and negative equity necessitate further investigation into asset valuation and business viability before consideration as a stable investment.

CHURCHDALE COURT FREEHOLD LIMITED - Analysis Report

Company Number: 13658736

Analysis Date: 2025-07-20 19:04 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net assets (£-24,800) with fixed assets fully offset by higher liabilities (£546,830), indicating insolvency on a balance sheet basis. There is no turnover or employees reported, raising concerns about operational viability and cash flow to meet obligations.

2. Key Concerns:

• Solvency: Net liabilities and negative shareholders’ funds suggest the company may not be able to meet its financial obligations without external support.
• Lack of Revenue: Zero turnover reported for multiple years indicates no trading activity or income generation, threatening sustainability.
• Operational Inactivity: No employees and no non-cancellable financial commitments imply the company might be a holding entity or dormant in practice, creating risk around its ongoing business purpose and cash flow.

3. Positive Indicators:

• Compliance: Company filings (accounts and confirmation statements) are up to date and not overdue, demonstrating regulatory compliance.
• Clear Ownership and Control: A single significant controller (Simon Masters) owns 75-100% shares and voting rights, which can simplify decision-making and recapitalization if needed.
• No Audit Requirement: As a micro-entity with no audit exemption, the company benefits from reduced reporting burdens.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the fixed asset valued at £522,000 to understand the asset’s liquidity and valuation basis.
• Review any off-balance sheet liabilities or contingent liabilities not disclosed.
• Clarify the company’s business model and plans for generating revenue given the absence of turnover and employees.
• Confirm whether the company is acting as a property management entity with service fees collected elsewhere or if it relies on shareholder funding.
• Assess the financial standing and creditworthiness of the sole significant controller to evaluate potential for future financial support.