HOUSE OF PAYNE LTD

Executive Summary

HOUSE OF PAYNE LTD faces significant solvency and liquidity risks as evidenced by negative net assets and a severe working capital deficit. While compliance filings are up to date and fixed asset investment has increased, the absence of employees and minimal current assets raise concerns about operational viability. Further investigation into financial arrangements and business activity is recommended before any investment consideration.

HOUSE OF PAYNE LTD - Analysis Report

Company Number: 13516748

Analysis Date: 2025-07-29 20:53 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and significant long-term liabilities exceeding total assets, indicating solvency concerns. The extremely low current assets compared to current liabilities also suggest liquidity stress.

2. Key Concerns:

• Solvency Risk: Net assets are negative (£-70,552 in 2024), caused by creditors due after more than one year (£359,727) exceeding total assets (£289,175), signaling potential inability to meet long-term obligations.
• Liquidity Issues: Current assets are negligible (£20 in 2024) against substantial current liabilities (circa £340,922), pointing to a critical working capital deficit. The company has no employees, implying possible operational inactivity or reliance on external service providers.
• Operational Stability: The company has reported no employees for two consecutive years and minimal current assets, raising questions about ongoing business operations and revenue generation sustainability.

3. Positive Indicators:

• The company is current on all filing deadlines, indicating compliance with Companies House requirements.
• Fixed assets have increased from £533,527 in 2023 to £630,077 in 2024, suggesting investment in long-term assets that may support future operations.
• Ownership and control are clearly defined, with a single corporate shareholder holding majority control and directors actively registered.

4. Due Diligence Notes:

• Investigate the nature and recoverability of long-term creditors and the structure of financing arrangements, including repayment terms and covenants.
• Clarify the operational status of the company given zero employees and minimal current assets, including revenue streams and business activity level.
• Assess the valuation and liquidity of fixed assets (£630k+) to determine if they can be leveraged or sold to improve cash flow or reduce liabilities.
• Review intercompany relationships with Upton Dental Practice Limited and any financial support mechanisms in place.
• Confirm whether the director’s occupation as a dentist correlates with active management or if the company is effectively dormant despite active status.