IFP INVESTMENTS LIMITED

Executive Summary

IFP Investments Limited exhibits improving net asset position driven by property revaluation; however, liquidity challenges remain due to significant short-term liabilities and reliance on director loans. The company is compliant with filing requirements but carries moderate solvency risk given its leveraged position. Further review of asset valuations and cash flow projections is recommended to fully assess financial stability.

IFP INVESTMENTS LIMITED - Analysis Report

Company Number: 13166557

Analysis Date: 2025-07-29 20:54 UTC

1. Risk Rating: MEDIUM
   The company shows some recovery in net assets in the latest year but continues to carry significant current liabilities exceeding current assets, indicating liquidity strain. The presence of substantial long-term borrowings secured on investment properties also elevates solvency risk moderately.

2. Key Concerns:

• Liquidity Deficit: Negative net current assets of approximately £37.7k as of 31 January 2025, with current liabilities vastly exceeding current assets, suggests potential cash flow constraints.
• High Long-Term Debt: Bank loans and overdrafts of £118.8k secured on investment properties represent significant leverage, exposing the company to refinancing and interest rate risks.
• Accumulated Losses and Reliance on Director Loans: Historical negative shareholders’ funds until 2024 and reliance on interest-free director loans (£43k) which are repayable on demand could pressure the company’s financial stability.

3. Positive Indicators:

• Improvement in Net Assets: Net assets have improved from a deficit of £8,969 in 2024 to a positive £20,970 in 2025, largely driven by revaluation gains on investment properties.
• Investment Property Revaluation: The company's investment property value more than doubled from £81k to £188k, enhancing total asset base and supporting borrowing capacity.
• Timely Filing and Compliance: The company has filed accounts and confirmation statements on time with no overdue filings, indicating good regulatory compliance and governance practices.

4. Due Diligence Notes:

• Review the assumptions and methodology behind the property revaluations, as no open market valuation was conducted; reliance on comparable transactions could mask over- or under-valuation risk.
• Assess the company’s cash flow forecasts and ability to meet short-term liabilities given persistent negative working capital.
• Scrutinize the terms, covenants, and repayment schedule of the bank loans to evaluate refinancing risk and potential impact on solvency.
• Investigate the nature and sustainability of director loans, including any plans for repayment or conversion to equity.