EASTSIDE DEVELOPMENTS LIMITED

1. Risk Rating: MEDIUM — with elevated liquidity risk

The company is active, filings are not overdue, and it reports positive net assets of £3,059,484 supported by £4,074,178 of tangible fixed assets. However, current liabilities of £1,882,153 exceed current assets of £1,239,445 by £642,708, cash is minimal at £4,926, and a £1,156,267 director current account sits within creditors due within one year. Solvency on a book basis appears supported by property assets, but liquidity is tight and dependent on director support, related-party recoveries, and property values. The absence of a filed profit and loss account and cash flow statement limits the assessment.

2. Key Concerns

1. Weak liquidity and working capital position
   Current assets cover only about 66% of current liabilities, producing net current liabilities of £642,708. Cash at bank of £4,926 is offset by bank overdrafts of £5,402, leaving negligible net cash. The company appears reliant on refinancing, asset disposals, or continued director support to meet short-term obligations.

2. Director loan and related-party exposures
   The director current account owed to S.J. Xxxxxxxname shown to subscribers was £1,156,267 at 31 March 2025, up from £749,586, and is classified within creditors due within one year. The accounts refer to a subordination agreement from the director, but the terms are not disclosed. Related-party debtors of £516,398 are owed by two companies connected to the director; recoverability, timing, and any security are unclear. These items create governance and liquidity risk.

3. Secured debt and valuation dependence
   Bank loans and overdrafts total £666,806 and are secured on four freehold properties with a combined revalued value of £1,267,649, work in progress of £311,882, a floating charge over other assets, and the director’s subordination agreement. The company carries a £1,110,067 fair value reserve, and investment properties are not depreciated. A fall in property values or tighter bank covenants could affect refinancing and reported net assets.

3. Positive Indicators

• Compliance and filing status: Active company; accounts and confirmation statement are not overdue per the provided data. The 31 March 2025 accounts were approved on 23 December 2025, within the private company filing deadline.
• Long operating history and positive reserves: Incorporated in 1993, with shareholders’ funds positive throughout the provided history and rising from £1,665,502 at 2015 year-end to £3,059,484 at 31 March 2025.
• Asset-backed balance sheet: Tangible fixed assets of £4,074,178 and net assets of £3,059,484 provide a book-value cushion. Bank debt reduced from £727,231 to £666,806 year-on-year, and the corporation tax liability fell from £57,259 to £29,529.
• Owner alignment: Xxxxxx Xxxxxxxxname shown to subscribers owns more than 75% of the company and is the controlling party, which can support decision-making but also concentrates related-party risk.

4. Due Diligence Notes

• Director loan and subordination: Obtain the loan agreement, subordination deed, and any board minutes. Confirm repayment terms, interest, demand rights, maturity, and whether the subordination remains effective in enforcement or insolvency scenarios. Obtain written confirmation that repayment will not be sought within 12 months.
• Related-party debtors: Review the latest accounts and credit status of the two connected companies owed £516,398. Confirm repayment schedules, security, interest, and whether any provision is required. Reconcile the £180,000 other debtors.
• Property valuations and bank facilities: Obtain independent valuations for the four freehold properties and work in progress. Review loan agreements, maturity profile, interest rates, loan-to-value and covenant tests, and the Companies House charges register.
• Management information: Request management accounts, cash flow forecasts, and the profit and loss account, which is not filed under the small company regime. Assess rental income, void rates, operating costs, and debt service coverage.
• Tax and governance: Confirm the status of the £29,529 corporation tax liability and the £371,986 deferred tax provision. Check officer disqualification records, PSC register, and any group or intercompany guarantees. Confirm the confirmation statement dates and any future filing obligations.

Names of the people mentioned are shown to subscribers. See subscription