DALSTON HALL VENUE LTD

Executive Summary

Dalston Hall Venue Ltd demonstrates high financial risk characterized by increasing net liabilities and liquidity deficits, raising concerns about its ability to meet obligations without continued support from related parties. While regulatory compliance is maintained and asset investment is evident, significant dependence on affiliated entities for financing and negative equity highlight the need for deeper due diligence on operational performance and funding sustainability.

DALSTON HALL VENUE LTD - Analysis Report

Company Number: 14006561

Analysis Date: 2025-07-29 21:05 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as indicated by large negative net assets (£-932,840) and a substantial increase in creditors falling due after more than one year (£784,244 in 2024 vs £293,021 in 2023). Net current assets are also negative at £-166,915, signaling liquidity concerns.

2. Key Concerns:

• Solvency and Negative Equity: The company’s net liabilities have worsened markedly over the past two years, with shareholders’ funds deeply negative, indicating an ongoing accumulation of losses or undercapitalisation.
• High Long-Term Debt to Participating Interests: Over £784k is owed to related parties (participating interests), which may suggest reliance on affiliated entities for financing rather than external, arm’s length creditors. This may also pose risks if these entities withdraw support.
• Liquidity Strain: Current liabilities of £197,856 vastly exceed current assets of £30,941, resulting in a working capital deficit, which raises questions about the company’s ability to meet short-term obligations without additional financing.

3. Positive Indicators:

• Timely Filings and Compliance: No overdue accounts or confirmation statements were noted, indicating good regulatory compliance and governance in terms of statutory filing obligations.
• Growth in Tangible Assets: The addition of tangible fixed assets (£18,319 net book value) suggests investment in operational capacity which may support future revenue generation.
• Experienced Directors and Clear Ownership: Two directors have been in place since incorporation, and there is clear control by related corporate entities, which may facilitate coordinated strategic decisions.

4. Due Diligence Notes:

• Investigate the terms and stability of the loans from participating interests, including repayment schedules and whether these are formalised or at risk of recall.
• Review underlying causes of negative retained earnings and net liabilities, including profit and loss trends. The absence of an income statement limits visibility into operational performance.
• Assess cash flow forecasts and the company’s strategy to improve liquidity and reduce reliance on related-party debt.
• Confirm that management charges and intercompany transactions are conducted on a commercial basis and do not mask financial difficulties.
• Evaluate the company’s business model viability in the hospitality sector given current financial stress and prevailing market conditions.