Risk Analysis: CROWDLORDS LIMITED

1. Risk Rating: HIGH

The company presents significant solvency concerns with negative net assets of £108,072, accumulated losses of £653,669, and net current liabilities of £111,894. The sharp deterioration in the balance sheet between 2024 and 2025, combined with deeply negative shareholders' funds, raises material doubts about the company's ability to continue as a going concern without external financial support.

2. Key Concerns

1. Balance Sheet Insolvency Net assets have swung from £61,588 (positive) in January 2024 to £-108,072 (negative) in January 2025—a deterioration of approximately £170,000. The profit and loss reserve stands at £-653,669, meaning cumulative losses now substantially exceed the combined share capital and share premium of £545,597. The company is balance-sheet insolvent.

2. Severe Liquidity Deficit Current liabilities of £180,036 exceed current assets by £111,894. The company cannot cover its short-term obligations from its current asset base. Debtors have also declined dramatically from £256,157 to £68,142, which may indicate write-offs, reduced business activity, or collection of outstanding amounts without replacement revenue.

3. Going Concern Uncertainty While the director has declared a going concern basis, no explicit disclosure of financial support arrangements (such as a letter of comfort, director loan commitments, or creditor forbearance agreements) is evident in the filed accounts. With negative working capital and negative net assets, the basis for this assertion requires substantiation.

3. Positive Indicators

• Regulatory Compliance: Accounts and confirmation statements are filed and up to date with no overdue filings, suggesting the director maintains basic statutory compliance.

• Operational History: The company has been active since 2014, demonstrating over a decade of operational continuity, which may indicate underlying business viability or shareholder commitment.

• Shareholder Commitment (Historical): The existence of £477,621 in share premium suggests previous capital investment by shareholders, indicating past willingness to fund the business. The PSC structure shows three individuals with meaningful stakes, which may facilitate decision-making regarding future funding.

4. Due Diligence Notes

• Director's Financial Position: Investigate whether Mr R B Bush (50-75% shareholder and sole director) has provided personal guarantees or loans to the company, and whether he has the means and willingness to continue supporting operations.

• Creditor Composition: The breakdown of £180,036 in current liabilities and £19,330 in long-term liabilities should be examined to determine whether significant amounts are owed to connected parties (who may not enforce repayment) or to arm's-length creditors who could trigger insolvency.

• FCA Regulatory Status: As a company operating under SIC code 64999 (Financial intermediation not elsewhere classified) and describing itself as offering "crowdfunding property investments," verify whether CrowdLords holds appropriate FCA authorisation and whether any regulatory capital requirements are being met given the negative net asset position.

• Related Party Transactions: Determine whether the reduction in debtors and changes in creditor balances involve transactions with related parties, which could alter the risk assessment.

• Revenue and Trading Performance: The income statement has not been included in the filed accounts (the company has elected exemption under section 444). Assessing whether the company is generating operational revenue or is dependent on investment income and capital movements is essential to understanding sustainability.

• Debtors Write-Off: Investigate the significant decline in debtors from £256,157 to £68,142—approximately a 73% reduction—which may indicate bad debts, impairment charges, or settlement of amounts that are not being replaced by new business.