IGLOO DEVELOPMENTS COBHAM LIMITED

Executive Summary

Igloo Developments Cobham Limited is a newly formed private limited company operating in real estate letting with early signs of financial distress, evidenced by negative net assets and reliance on shareholder support. While regulatory compliance is satisfactory, the current financial structure presents significant solvency and liquidity risks. Further due diligence on creditor composition, cash flows, and shareholder backing is essential to assess viability.

IGLOO DEVELOPMENTS COBHAM LIMITED - Analysis Report

Company Number: 14736798

Analysis Date: 2025-07-29 13:41 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and shareholders’ funds, indicating a deficit position shortly after incorporation, posing significant solvency concerns. Although shareholder support is noted, this reliance signals elevated financial risk.

2. Key Concerns:

• Negative net current assets of £5,359 and net liabilities of £4,453 within the first financial year raise questions about the company’s ability to meet short-term obligations without external support.
• Reliance on shareholder support explicitly acknowledged in the accounts to meet obligations for at least 12 months suggests liquidity constraints and potential cash flow vulnerability.
• Concentration of control among three directors who are also significant shareholders could raise governance risks if operational or financial challenges arise.

3. Positive Indicators:

• The company is compliant with filing and confirmation statement deadlines, showing good regulatory adherence for a newly incorporated entity.
• The business operates in the real estate sector (SIC 68209), which can offer stable income streams from property letting, assuming effective asset management.
• The directors have taken steps to prepare financial statements in accordance with relevant accounting standards, reflecting transparency.

4. Due Diligence Notes:

• Investigate the nature and terms of the “other creditors” amounting to £122,416 to understand the company’s short-term liabilities and any contingent obligations.
• Review cash flow statements or bank statements (not provided) to assess liquidity trends and timing of cash inflows/outflows.
• Understand the business plan and projected income streams from property operations to evaluate prospects for turning around the negative equity position.
• Examine the background and financial standing of the shareholders who have agreed to support the company, to gauge the sustainability of this support.
• Confirm absence of any director disqualifications or past insolvency issues, as none are indicated but would be material.