FENLAND GLASSHOUSE LIMITED

Executive Summary

Fenland Glasshouse Limited presents a high-risk profile primarily due to substantial negative equity and heavy reliance on secured loans from its parent company. While liquidity is supported by cash reserves and parent backing, the absence of income statement data limits a full operational assessment. Further investigation into the company’s revenue generation and asset valuations is recommended before investment consideration.

FENLAND GLASSHOUSE LIMITED - Analysis Report

Company Number: 12520333

Analysis Date: 2025-07-29 20:06 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, evidenced by large net liabilities (£12.8m as at 31 Dec 2022) and current liabilities vastly exceeding current assets. The reliance on substantial related-party loans with long repayment terms and negative shareholders’ funds increases financial vulnerability.

2. Key Concerns:

• Severe Negative Equity: Net liabilities of £12.8m indicate the company’s liabilities exceed its assets, a critical solvency red flag.
• Concentration Risk: Over £97m of secured loans are owed to the parent company, Greencoat Fenland Limited, creating dependency on a single creditor’s continued support.
• Lack of Operational Revenue Disclosure: Income statement omitted; absence of clear revenue and profit data limits assessment of operational sustainability and cash flow generation.

3. Positive Indicators:

• Strong Cash Reserves: Despite challenges, the company holds £5.55m cash and short-term assets of £11.6m, providing some liquidity buffer.
• Parent Support: The parent company has confirmed no demand for loan repayment within 12 months, supporting going concern status.
• Unqualified Audit: Auditor’s report is unqualified, implying no immediate accounting or reporting concerns.

4. Due Diligence Notes:

• Obtain detailed income statements and cash flow statements to evaluate operational profitability and liquidity trends.
• Review loan agreements with Greencoat Fenland Limited for covenants, interest terms, and repayment schedules.
• Assess the valuation and impairment testing of tangible fixed assets (£79m) to confirm recoverability under market conditions.
• Investigate the company’s business model and strategy to understand how it plans to return to profitability and reduce reliance on shareholder loans.
• Confirm any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.