Company Number: 13681034

Analysis Date: 2025-07-29 18:05 UTC

1. Risk Rating: LOW

The company demonstrates solid net asset backing (£3.63m) with a strong tangible fixed asset base (£3.98m) relative to its liabilities. Current liabilities are well covered by current assets, yielding positive net working capital (£270k). The absence of overdue filings and a stable director lineup further support low risk.

2. Key Concerns:

• Stock concentration: Nearly all current assets are tied up in caravans and lodges stock (£663k), which may affect liquidity if sales slow or property values fluctuate.
• Deferred tax liability: A notable deferred tax provision (£148k) reflects timing differences that could crystallize as a cash tax outflow, warranting monitoring.
• Reduction in employee count: Average employees fell from 56 to 49, which could signal operational adjustments or cost pressures.

3. Positive Indicators:

• Positive net current assets and strong tangible asset backing provide reassurance on solvency.
• No overdue accounts or confirmation statement filings, indicating good regulatory compliance.
• Ownership and control concentrated in experienced local individuals and a holding company, reducing governance complexity.
• Established holiday village business model supported by active website and multiple revenue streams (property sales, lettings, catering).

4. Due Diligence Notes:

• Review detailed cash flow statements and profitability trends to confirm ongoing liquidity and earnings sustainability.
• Evaluate sales velocity and realizability of caravan and lodge stock, including any seasonal or market risks.
• Confirm status and terms of bank loans and overdrafts (£35k combined) and any covenants.
• Assess impact and timing of deferred tax liabilities on future cash flows.
• Verify directors’ backgrounds for any undisclosed risks beyond publicly available data.