Company Number: 13829941

Analysis Date: 2025-07-29 12:59 UTC

1. Risk Rating: MEDIUM

Justification: FAIRHOLME 1982 LIMITED shows positive net asset growth and no overdue filings, indicating reasonable operational stability and compliance. However, the company carries significant long-term liabilities and has no employees, which may pose liquidity and operational concerns. The limited financial disclosures (abridged accounts, no income statement) restrict full assessment of solvency and cash flow robustness.

2. Key Concerns:

• Long-term liabilities: The company has substantial amounts falling due after more than one year (£909,240), which is over half of total assets less current liabilities (£1,778,580). This level of debt could pressure solvency if not matched with stable income or asset realizations.
• Negative or no operational cash flow indicators: Absence of employees and no income statement (abridged filing) limits insight into revenue generation and cash flow, raising questions about the company’s ability to service liabilities and sustain operations.
• Concentration of control and directorship: Directors and PSCs are closely related individuals sharing significant control and voting rights. While not inherently negative, this may raise governance and minority investor concerns regarding decision-making transparency.

3. Positive Indicators:

• Improved net assets: Net assets increased significantly from £240,100 in 2023 to £869,340 in 2024, reflecting asset growth or debt reduction.
• No overdue filings: Accounts and confirmation statements are up to date, showing adherence to regulatory compliance.
• Substantial fixed asset investments: Investments valued at £1,401,240 provide a strong asset base supporting the balance sheet.

4. Due Diligence Notes:

• Obtain full financial statements including income statement and cash flow details to assess profitability and liquidity thoroughly.
• Investigate nature and terms of long-term liabilities to evaluate refinancing risk and debt servicing capacity.
• Review related party transactions and governance arrangements due to close family control to ensure proper oversight.
• Confirm asset valuation methodology for fixed assets and investments to verify balance sheet reliability.