HOMEMADE RENTALS LIMITED

Executive Summary

Homemade Rentals Limited exhibits ongoing financial distress characterized by negative net assets and insufficient liquidity to cover short-term obligations. Despite holding significant fixed assets, the absence of profitability and low cash reserves, combined with recent director turnover, raise concerns about operational sustainability and governance stability. Further investigation into asset quality, management changes, and detailed financial performance is recommended to clarify the company's risk profile.

HOMEMADE RENTALS LIMITED - Analysis Report

Company Number: 12763264

Analysis Date: 2025-07-29 19:39 UTC

1. Risk Rating: HIGH
   The company demonstrates persistent negative net assets and shareholders’ funds over multiple years, indicating solvency concerns. Current liabilities significantly exceed current assets, reflecting poor liquidity. The company also has no reported employees and minimal cash reserves, raising operational sustainability questions.

2. Key Concerns:

• Negative shareholders’ funds of approximately £16,889 as of July 2024, consistent over several years, indicating accumulated losses and potential solvency risk.
• Net current liabilities of nearly £6,000 and negligible cash balances (£7), suggesting limited ability to meet short-term obligations.
• Director turnover in late 2024 and early 2025, including resignation and reappointment within a short period, which could point to governance or operational instability.

3. Positive Indicators:

• The company holds tangible fixed assets valued at £220,681, which may provide collateral or underpin business value.
• It remains active and compliant with filing deadlines, including accounts and confirmation statements, with no overdue submissions.
• Controlled by a single significant shareholder with full voting rights, which could enable decisive management actions.

4. Due Diligence Notes:

• Investigate the nature and realizability of the fixed assets (£220K) to understand their liquidity and potential to cover liabilities.
• Review the reasons for director appointments and resignations within a short timeframe in 2024-2025 to assess governance risk.
• Obtain detailed profit and loss information not filed publicly to analyze operational performance and cash flow dynamics.
• Assess any contingent liabilities or off-balance sheet commitments that might exacerbate financial risk.
• Confirm whether the company has access to further funding or financial support from its sole shareholder or external lenders.