CORDIA UK HOLDINGS LIMITED

Executive Summary

CORDIA UK HOLDINGS LIMITED is an active private investment holding group primarily engaged in property development. Despite compliance with filing requirements and recent shareholder capital injections, the company faces high financial risk due to significant accumulated losses, negative equity, and a large debt burden. Careful scrutiny of its debt structure, receivables quality, and operational viability is essential to fully understand its financial stability and sustainability.

CORDIA UK HOLDINGS LIMITED - Analysis Report

Company Number: 12793732

Analysis Date: 2025-07-20 15:16 UTC

1. Risk Rating: HIGH
   The company shows significant accumulated losses, negative shareholders’ funds, and heavy reliance on debt financing, which together indicate a high level of solvency risk.

2. Key Concerns:

• Negative Equity & Accumulated Losses: The group’s shareholders’ funds are deeply negative (£-17.25m in 2023), with consecutive large annual losses (£8.87m in 2023). This erodes the financial buffer and raises concerns about long-term viability.
• High Debt Burden: Creditors due after more than one year exceed £44m, significantly surpassing net assets, indicating heavy leverage which may strain cash flows and increase default risk.
• Poor Liquidity Position: Current assets are largely debtors and stocks, with very low cash balances (£105 in 2023), suggesting limited immediate liquidity to meet short-term obligations despite positive net current assets.

3. Positive Indicators:

• Timely Filing & Compliance: No overdue filings for accounts or confirmation statements, suggesting good regulatory compliance and governance discipline.
• Going Concern Confirmation: Auditor’s report confirms the appropriateness of the going concern basis, indicating management and auditor believe the company can continue operating for the foreseeable future.
• Strong Shareholder Support: A significant share premium injection (£7.85m added in 2023) demonstrates shareholder willingness to recapitalise and support the business.

4. Due Diligence Notes:

• Review the nature and terms of the substantial long-term creditors to assess refinancing risk and debt service capacity.
• Investigate the quality and collectability of the large debtor balances (£42.8m), as reliance on these receivables impacts liquidity and solvency.
• Examine the business plan and cash flow forecasts underpinning the going concern assertion, especially given the recurring operational losses.
• Assess the operational performance and outlook of the property development activities, including market conditions and project pipeline.
• Consider any contingent liabilities or off-balance sheet exposures not disclosed in the accounts.