Company Number: 15341445

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: MEDIUM

Justification: Goodtipping Ltd is a newly incorporated private limited company (incorporated December 2023) operating in the real estate sector. Its financial statements for the first full year ending December 2024 show significant investment property assets (£910,000) and a sizeable long-term creditor balance (£624,000). The net asset position is positive (£230,014), but the large creditor balance relative to current assets and cash indicates moderate solvency risk. There are no overdue filings or governance issues apparent.

2. Key Concerns:

• High long-term liabilities (£624,000) compared to total assets and current assets, which may pressure cash flows if not well managed.
• Relatively low cash reserves (£23,065) potentially limiting liquidity to cover short-term obligations or unexpected expenses.
• Reliance on fair value revaluation of investment properties (£217,619 reserve) which are unrealised gains and may fluctuate with market conditions, impacting net asset stability.

3. Positive Indicators:

• Positive net assets and shareholders’ funds, indicating equity buffer.
• No overdue filing or compliance issues; accounts and confirmation statements filed on time.
• Business focus on owning and letting real estate, a tangible asset-based sector which can provide stable income streams if properties are properly managed and let.

4. Due Diligence Notes:

• Review terms and repayment schedule of the £624,000 long-term creditor balance to assess refinancing or repayment risk.
• Examine rental income streams, occupancy rates, and property maintenance costs to evaluate cash flow sustainability.
• Verify the basis and methodology for investment property fair value revaluation given no external valuation was performed.
• Investigate directors’ plans for growth, capital expenditure, and financing to understand future solvency profile.
• Confirm absence of any contingent liabilities or legal claims that could impact financial position.