GREAT ORME ESTATES LTD

Executive Summary

GREAT ORME ESTATES LTD displays high financial risk characterized by persistent negative net assets and significant current liabilities exceeding current assets, indicating solvency and liquidity challenges. While regulatory compliance is maintained and fixed assets provide some value, the company’s ability to meet obligations and sustain operations warrants close scrutiny. Further investigation into debt terms and cash flow viability is recommended before investment consideration.

GREAT ORME ESTATES LTD - Analysis Report

Company Number: 12741613

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net assets and substantial current liabilities far exceeding current assets. The ongoing negative shareholders' funds and net current liabilities raise concerns about the company's ability to meet short-term obligations and overall financial stability.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has recorded net liabilities of approximately £36,600 as of the most recent financial year, indicating insolvency on a balance sheet basis.
• High Current Liabilities vs. Low Current Assets: Current liabilities stand at £153,000, while current assets are only £2,762, resulting in a severely negative working capital position (-£47,537), which suggests liquidity strain.
• Reliance on a Single Director and Shareholder: The company is wholly controlled by Mr. Joseph Grunfeld, which may concentrate operational and governance risks, especially as there is only one employee.

3. Positive Indicators:

• Consistent Tangible Fixed Assets: The company holds tangible fixed assets (land and buildings) valued at £163,940, which remain stable and could provide collateral value.
• Compliance with Filing Requirements: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance.
• Small Company Reporting Exemptions Utilised Properly: The company has adopted the small companies regime correctly, which may reduce administrative burden.

4. Due Diligence Notes:

• Investigate the nature and terms of the £153,000 bank loan, including repayment schedules and covenants, to assess refinancing risk.
• Review cash flow statements and forecasts (not provided) to evaluate operational cash generation and ability to service debts.
• Understand the business model and revenue streams given the low turnover (implied by low debtor and cash balances) and the sustainability of the estate letting operations under SIC 68209.
• Assess any contingent liabilities or guarantees not reflected in the balance sheet.
• Evaluate director’s plans or intentions for addressing the negative equity and liquidity issues.