FP - YNSECT I LLP

Executive Summary

FP - YNSECT I LLP maintains a stable net asset base largely composed of unlisted investments, but minimal cash and absence of employees raise liquidity and operational sustainability concerns. The company is compliant with filing requirements, but limited financial disclosures restrict full assessment of its financial health. Further due diligence on asset valuation and business activities is recommended to clarify risk exposure.

FP - YNSECT I LLP - Analysis Report

Company Number: OC437274

Analysis Date: 2025-07-20 18:57 UTC

1. Risk Rating: MEDIUM
   The company shows a stable net asset position with significant current asset investments, but extremely low cash holdings and no recorded employees raise concerns about operational liquidity and sustainability.

2. Key Concerns:

• Liquidity Risk: Cash at bank is reported as £1, despite substantial current asset investments of approximately £4.95 million. This suggests limited immediate cash availability for operational needs or liabilities.
• Operational Stability: The LLP has no employees and has not reported any profit and loss account, which may indicate minimal or no trading activity. This could affect ongoing viability.
• Transparency and Governance: The LLP has opted not to file a profit and loss account, limiting insight into operational performance and cash flow. The investment assets are unlisted and not further detailed, which could mask valuation or impairment issues.

3. Positive Indicators:

• Strong Net Asset Position: Net current assets and net assets remain consistently around £4.95 million, indicating a stable balance sheet with low liabilities.
• Compliance: Filing deadlines for accounts and confirmation statements are up to date with no overdue filings, reducing regulatory risk.
• Experienced and Diverse Management: The designated members are numerous and geographically diverse, which may provide access to broad expertise and networks.

4. Due Diligence Notes:

• Clarify the nature and valuation basis of the unlisted current asset investments to assess their realizability and risk.
• Investigate the LLP’s revenue generation, operating model, and reasons for having no employees or profit and loss filings to understand operational sustainability.
• Review cash flow arrangements, including any related-party transactions or capital contributions that support liquidity.
• Examine potential contingent liabilities or off-balance sheet commitments not visible in the balance sheet.
• Confirm the governance structure and decision-making processes given the complex membership.