FENCE LINE HOLDINGS LIMITED

Executive Summary

Fence Line Holdings Limited presents a low financial risk profile based on strong liquidity, robust net assets, and timely statutory compliance. However, the company's status as a holding entity with single-person control and unaudited financials warrants further due diligence to confirm asset valuations and governance robustness. Overall, the company appears financially stable with no immediate solvency or liquidity concerns.

FENCE LINE HOLDINGS LIMITED - Analysis Report

Company Number: 13614929

Analysis Date: 2025-07-20 14:29 UTC

1. Risk Rating: LOW
   Fence Line Holdings Limited demonstrates strong financial health with substantial net assets and net current assets relative to liabilities. The company holds significant cash reserves and investment property valued consistently across years, indicating solid solvency and liquidity positions.

2. Key Concerns:

• Concentration of control: 100% ownership and voting control by a single individual (Mr Darren John Stephens) may present governance risks and limit oversight.
• Limited operational data: As a holding company, the absence of turnover or operational income details restricts assessment of business sustainability beyond asset holdings.
• Unaudited accounts: The financial statements are abridged and unaudited, which may limit the reliability of the reported figures and reduce transparency.

3. Positive Indicators:

• Strong liquidity: Cash balances exceed £1.1 million with current liabilities below £35,000, ensuring ample short-term liquidity.
• Growing net assets: Net assets increased from £1.26 million in 2021 to over £2.2 million in 2024, reflecting asset appreciation or capital injection.
• Compliance: No overdue filing or confirmation statement deadlines noted; company status is active and in good standing.
• Conservative accounting policies: Investment properties are carried at fair value with management valuation indicating no material misstatement.

4. Due Diligence Notes:

• Verify the valuation methodology and recent independent appraisal of investment property to confirm asset values.
• Obtain details on any underlying subsidiaries or investments to understand income generation and operational risks.
• Review director and shareholder governance arrangements given single person control, including any related party transactions or conflicts of interest.
• Confirm the cause of significant increase in debtors from £27k to £385k in the latest year to assess collectability and impact on working capital.
• Consider requesting audited financials or further disclosures for deeper assurance on financials.