FRONTIER ESTATES (FORTH) LTD

Executive Summary

FRONTIER ESTATES (FORTH) LTD is a dormant private limited company with negligible financial activity and minimal net assets, presenting a high risk from a solvency and operational perspective. While it maintains good compliance with filing requirements and has clear ownership, the absence of business activity limits its attractiveness for investors without further context on its role within the group. Additional due diligence should focus on the parent company’s financial position and the strategic intent behind maintaining this entity.

FRONTIER ESTATES (FORTH) LTD - Analysis Report

Company Number: 13658269

Analysis Date: 2025-07-20 19:13 UTC

1. Risk Rating: HIGH
   Justification: The company is classified as dormant with extremely minimal financial activity and negligible net assets (£2), indicating no substantive operational or financial substance. There is no evidence of revenue, meaningful assets, or liabilities. This situation presents a high risk for any investor due to a lack of financial viability and inability to meet obligations.

2. Key Concerns:

• Dormant Status and Minimal Financial Activity: The company shows virtually no current assets beyond nominal debts owed by group undertakings, with net assets stuck at £2 over multiple years. This suggests no trading or income generation.
• Solvency and Liquidity: With only £2 in net assets and no recorded liabilities or cash flow, the company cannot be considered solvent in any meaningful sense, nor does it demonstrate liquidity to cover obligations.
• Operational Stability and Business Sustainability: The company has no financial history of trading or revenue, no indication of active projects, and exists purely as a shell under the control of a parent company, raising concerns about its viability as an independent business.

3. Positive Indicators:

• Compliance with Filing Requirements: Despite being dormant, the company has filed accounts and confirmation statements on time, indicating adherence to statutory compliance and governance standards.
• Clear Ownership and Control Structure: The company is wholly owned and controlled by Frontier Estates Limited, which provides clarity on ultimate control and decision-making authority.
• Experienced Management: Directors include individuals with relevant professional backgrounds (e.g., Chartered Surveyor), suggesting competent oversight if operations were to commence.

4. Due Diligence Notes:

• Investigate the Purpose of the Company: Determine whether this entity is a holding or special purpose vehicle within a larger group structure rather than an operating business.
• Review Group Financials: Since the company shows debts owed by group undertakings, assess the financial health and activity of the parent and related entities to understand group-level risks and dependencies.
• Confirm Future Plans or Dormancy Intent: Ascertain if there are plans to activate trading or develop projects under this company or if it will remain dormant.