COLTMAN HOLDINGS LIMITED

Executive Summary

Coltman Holdings Limited shows some improvement in net assets driven by investment property but faces liquidity risks evidenced by significant negative net current assets. The company is compliant with filing obligations and maintains going concern status, but limited operational information and concentrated asset holdings suggest careful further review is warranted. Key areas for investigation include asset valuations, creditor terms, and operational cash flows to fully assess financial stability.

COLTMAN HOLDINGS LIMITED - Analysis Report

Company Number: 12510909

Analysis Date: 2025-07-29 12:08 UTC

1. Risk Rating: MEDIUM

Justification: Coltman Holdings Limited shows a modest net asset position (£49,374 as of 31 December 2023) improving significantly from prior years (£1). However, the company exhibits persistent negative net current assets (-£120,938 in 2023), indicating potential liquidity stress. The company holds substantial fixed assets, mainly investment property, but current liabilities remain high relative to current assets, creating solvency concerns. The absence of audit and limited operational data restricts full assessment.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£143,715) considerably exceed current assets (£22,777), suggesting potential short-term liquidity challenges.
• Concentration in Investments and Property: The balance sheet is heavily weighted towards investment property (£120,312) and associate investments (£50,000), which may lack liquidity or generate insufficient cash flow for obligations.
• Limited Operational Disclosure: The company has only one employee (the director), and the accounts do not provide profit and loss details, limiting insight into operational performance and sustainability.

3. Positive Indicators:

• Improved Net Assets: Net assets increased from £1 in 2022 to £49,374 in 2023, reflecting an increase in asset base, primarily from investment property.
• Compliance with Filing: The company is up to date with accounts and confirmation statement filings, indicating sound regulatory compliance.
• Going Concern Stance: The director confirms preparation of accounts on a going concern basis, and no disqualifications or liquidation status are noted.

4. Due Diligence Notes:

• Verify the valuation and liquidity of the investment property, including whether an independent external valuation has been undertaken despite the note stating none was done.
• Investigate the nature and terms of the significant current liabilities (£143,715), including creditors and accruals, to assess timing and risk of default.
• Obtain detailed profit and loss information and cash flow statements to evaluate operational performance and cash generation capacity.
• Assess the financial health and performance of the associate company (Sotex International Limited) given the 31% holding and its impact on the investment valuation.
• Confirm the director’s plans or strategies to address the negative working capital situation and ensure ongoing operational stability.