LACCAFIN PROPERTIES LTD

Executive Summary

Laccafin Properties Ltd shows significant solvency and liquidity risk due to high director loans and liabilities relative to current assets and equity. While the company benefits from a strong investment property asset base and up-to-date compliance, reliance on director funding and limited liquid resources present material financial risks. Further due diligence on director loans and cash flow sustainability is advisable before investment consideration.

LACCAFIN PROPERTIES LTD - Analysis Report

Company Number: 14460475

Analysis Date: 2025-07-20 18:54 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to a significant imbalance between current assets and current liabilities, with liabilities substantially exceeding liquid assets. The presence of large director loans classified as creditors further exacerbates solvency concerns.

2. Key Concerns:

• Solvency Risk: The company’s current liabilities are £6,982, but amounts due after one year total £486,810, largely representing director advances or loans. The net assets are low (£36,113) in comparison to these liabilities, indicating potential difficulty in meeting obligations without refinancing or asset disposals.
• Liquidity Concerns: Cash on hand is £9,430 with debtors of only £1,905, which is insufficient to cover even the current liabilities (£6,982) comfortably, suggesting tight short-term liquidity.
• Director Loans/Related Party Exposure: The bulk of the long-term creditors (£486,810) are advances from the director, James Kevin O’Connell. This reliance on director funding may pose risks if the director withdraws support or if repayment terms are not sustainable.

3. Positive Indicators:

• Asset Base Stability: The company holds investment property valued at £518,570, which provides a tangible asset backing. This is a positive indicator of underlying asset value that could be leveraged or sold if necessary.
• Compliance and Filing Status: All statutory filings including accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance.
• Ownership and Control Transparency: Ownership and control are clear and consolidated under one individual, reducing complexity in governance and decision-making.

4. Due Diligence Notes:

• Investigate the terms and conditions of the director’s loan advances, including repayment schedules, interest rates, and any security arrangements.
• Review cash flow projections and business plans to assess the company’s ability to generate sufficient operating cash flow to meet liabilities.
• Confirm the valuation methodology and marketability of the investment property to understand realistic liquidation values and timing.
• Assess any contingent liabilities or off-balance sheet risks not disclosed in the accounts.
• Verify that no director conduct or disqualification issues exist given sole director status.