CLAYBROOK DEVELOPMENTS LTD

Executive Summary

Claybrook Developments Ltd shows significant financial distress characterized by negative working capital and net liabilities, placing it at high risk from a solvency and liquidity perspective. Despite timely statutory compliance and a substantial fixed asset base, the company’s small operational scale and deteriorating equity warrant close scrutiny of asset quality, debt obligations, and shareholder support before investment consideration. Further due diligence on the company’s operational cash flows and creditor arrangements is advised to evaluate its viability.

CLAYBROOK DEVELOPMENTS LTD - Analysis Report

Company Number: 14223951

Analysis Date: 2025-07-29 18:48 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent net current liabilities exceeding £1.19 million and net negative equity of approximately £27,000 as of the latest accounts. The company's fixed assets appear static and insufficient to cover short-term obligations, indicating a stressed financial position.

2. Key Concerns:

• Negative Net Current Assets: The company has a consistent and substantial working capital deficit (circa £1.2 million), suggesting an inability to meet short-term liabilities with available current assets.
• Net Liabilities and Negative Equity: Shareholders’ funds are negative and have deteriorated from £(4,629) in 2023 to £(26,935) in 2024, highlighting accumulated losses or write-downs undermining the capital base.
• Small Size and Limited Operational Scale: With only 2 employees reported in 2024 and minimal current assets (£19,874), the business scale is very small and may struggle operationally to generate sufficient cash flow to service debts or fund activities.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed timely, indicating compliance with statutory filing obligations and no immediate regulatory concerns.
• Active Status with Clear Ownership: The company is active with defined controlling interests (Cam Construction (Midlands) Limited holding 75-100% and Mary Ann Properties Limited holding 25-50%), which may provide some financial or operational support.
• Fixed Asset Base: The company holds fixed assets valued at over £1.17 million, which could represent development land or property assets relevant to its SIC code (Development of building projects), offering potential collateral value.

4. Due Diligence Notes:

• Nature and Valuation of Fixed Assets: Investigate the composition, market value, and liquidity of the £1.17 million fixed assets to understand their recoverability and if they are encumbered or impaired.
• Debt Composition and Terms: Clarify the structure of current liabilities (£1.22 million), including creditor identities, repayment terms, and any covenant risks.
• Operational Cash Flow and Profitability: Obtain profit and loss data or management accounts to assess ongoing operational sustainability, as these accounts omit P&L details.
• Support from Parent or Controlling Entities: Examine the relationship and financial backing from the controlling shareholders, especially Cam Construction (Midlands) Limited, to assess potential for capital injections or guarantees.
• Director and Governance Stability: The only director listed resigned in 2023; verify current director arrangements and any impact on governance or strategic direction.