EUROCENT (TWICKENHAM) SUB LTD

Executive Summary

EUROCENT (TWICKENHAM) SUB LTD exhibits a high-risk profile primarily due to negative net assets and significant liquidity constraints as current liabilities substantially exceed current assets. While compliance and governance appear sound for this newly incorporated entity, the financial structure and leverage pose solvency concerns that warrant further investigation, particularly regarding creditor terms and parent company support.

EUROCENT (TWICKENHAM) SUB LTD - Analysis Report

Company Number: 14718706

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

1. Risk Rating: HIGH
   The company shows significant solvency risks with negative net assets and substantial long-term liabilities exceeding its fixed assets. Current liabilities exceed current assets by a large margin, indicating liquidity pressure.

2. Key Concerns:

• Negative net assets (£-336,041) signal the company is technically insolvent on a balance sheet basis.
• Current liabilities (£776,811) vastly outweigh current assets (£13,152), resulting in negative net current assets of £-763,659 and potential short-term cash flow issues.
• Long-term creditors (£2,104,610) outweigh fixed assets (£2,533,067) only marginally, raising concerns about the company's ability to service long-term obligations without additional capital or cash inflows.

3. Positive Indicators:

• The company is newly incorporated (March 2023) and may still be in an investment or setup phase, which can explain initial losses or negative equity.
• No overdue filings or compliance issues; accounts and confirmation statements are up to date, indicating proper governance and regulatory compliance.
• Ownership and control are clearly defined with a single parent entity holding 75-100% of shares and voting rights, suggesting potential support from the parent.

4. Due Diligence Notes:

• Investigate the nature and terms of the £2.1 million long-term creditors to assess repayment terms, interest obligations, and potential refinancing risks.
• Understand the company’s business model in buying and selling own real estate to evaluate asset valuation quality and market exposure.
• Clarify the parent company’s financial position and willingness to support Eurocent (Twickenham) Sub Ltd, given the negative equity and liquidity concerns.
• Review cash flow forecasts and any planned capital injections or asset sales to improve solvency and liquidity.
• Confirm no undisclosed contingent liabilities or off-balance sheet obligations that could exacerbate financial distress.