Company Number: 13659646

Analysis Date: 2025-07-20 17:57 UTC

1. Risk Rating: MEDIUM

Justification: Diversum & Jucundus Limited shows some financial pressures primarily from negative net current assets and net liabilities, but it also holds significant investment property assets valued at £471,700. The company is relatively young (incorporated in 2021) and maintains compliance with filing deadlines. However, the balance sheet indicates solvency concerns that merit caution.

2. Key Concerns:

• Negative Net Current Assets: The company reports net current liabilities of £134,132 as of 31 October 2023, indicating potential liquidity strain to meet short-term obligations.
• Net Liabilities Position: The net asset position remains negative at £2,198, though improved from prior years, suggesting accumulated losses and potential funding gaps.
• Concentration of Assets in Investment Property: Over 99% of fixed assets are investment properties valued by the director, which may be subject to valuation risk and market fluctuations affecting recoverability.

3. Positive Indicators:

• Compliance: The company is current with both accounts and confirmation statement filings, reflecting good governance.
• Asset Stability: Investment properties are held at fair value and appear stable in valuation year-on-year, providing a tangible asset base.
• Ownership and Control: A single controlling shareholder/director (Andy David Clemas) with full voting rights may facilitate swift decision-making and capital support if needed.

4. Due Diligence Notes:

• Review Cash Flow and Debt Servicing Capability: Investigate how the company manages liquidity given negative working capital and its ability to service mortgages totaling £341,490.
• Verify Investment Property Valuation: Confirm the methodology and assumptions behind the director’s valuation for these properties and assess market conditions.
• Examine Profit and Loss Detail: Since the P&L account was not included in the filings, request underlying income and expense data to understand operational performance and loss drivers.

Executive Summary: