ELMERS END FIRST ESTATES LTD

Executive Summary

Elmers End First Estates Ltd shows high financial risk with significant negative net assets and no liquid resources to cover liabilities. The company relies on an intra-group loan and has disposed of its fixed assets, raising concerns about operational sustainability and solvency. While regulatory compliance is maintained, further due diligence is necessary to assess the viability of ongoing business operations and financial support mechanisms.

ELMERS END FIRST ESTATES LTD - Analysis Report

Company Number: 13936858

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by negative net assets of £13,197 at the latest reporting date and an ongoing net current liabilities position. The absence of fixed assets and cash coupled with intra-group loan liabilities signals financial distress.

2. Key Concerns:

• Negative Net Worth: Shareholders’ funds deteriorated from -£1,151 to -£13,198 in one year, indicating accumulated losses and potential insolvency risk.
• Cash and Liquidity Deficit: Zero cash and current assets in 2023 with current liabilities of £550 suggest immediate liquidity issues to meet short-term obligations.
• Dependency on Intra-group Loan: The company carries a significant intra-group loan (£12,647) due after one year, representing a liability that may require repayment or refinancing, adding financial uncertainty.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting regulatory compliance and governance diligence.
• Single Director with Control: The sole director owns 75-100% shares and controls the company, potentially allowing swift decision-making and operational agility.
• Micro-entity Reporting: The company benefits from simplified reporting and audit exemption, reducing administrative burdens.

4. Due Diligence Notes:

• Investigate the nature and terms of the intra-group loan—interest, repayment schedule, and the financial health of the lending entity.
• Clarify the reason for disposal of all fixed assets in 2023 and its impact on operations and asset base.
• Review cash flow forecasts and working capital management plans to understand how the company intends to meet short-term obligations with no reported cash or current assets.
• Assess any contingent liabilities or off-balance sheet exposures not evident from the accounts.
• Confirm if the company is currently trading or dormant, given the lack of assets and cash reported.