LANSDOWN REMEDIATION LTD

Executive Summary

Lansdown Remediation Ltd is currently facing high financial risk characterized by negative net assets and a substantial working capital deficit, largely driven by significant related party debt. While the company maintains regulatory compliance and director support for going concern, investor caution is advised pending further review of operational profitability, cash flow, and governance stability.

LANSDOWN REMEDIATION LTD - Analysis Report

Company Number: 14124582

Analysis Date: 2025-07-20 15:48 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, as evidenced by persistent net current liabilities and negative net assets. The scale of related party debt and recent changes in ownership further contribute to risk concerns.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: As of 31 May 2024, the company reported net current liabilities of £184,268 and net assets of £-178,096, indicating financial distress and an inability to cover short-term obligations from current assets.
• High Related Party Debt: A significant creditor balance (£425,972) is owed to a related party (Canbury Home Ltd), which suggests reliance on director or shareholder funding that may not be sustainable or at arm's length.
• Frequent Director Turnover and Change in Ultimate Control: Within less than three years of incorporation, there have been multiple director resignations and appointments, culminating in a single individual (Mr. Thomas Kiddier) acquiring 100% ownership in March 2025. Such changes may indicate governance instability or restructuring due to financial or operational challenges.

3. Positive Indicators:

• Filing Compliance: The company is up to date with its statutory filings, with no overdue accounts or confirmation statements, demonstrating regulatory compliance.
• Going Concern Statement with Director Support: The latest accounts include a going concern assertion supported by director undertakings to continue financial support without seeking repayment in the near term, which mitigates immediate solvency concerns.
• Growing Operational Scale: Significant increase in current assets from £2,623 (2023) to £462,004 (2024), driven by trade debtors and stock, indicates business activity expansion.

4. Due Diligence Notes:

• Examine Related Party Transactions: Investigate the nature, terms, and sustainability of the £425,972 owed to Canbury Home Ltd and whether this debt is repayable or convertible, as heavy reliance on related party financing can mask underlying financial stress.
• Assess Cash Flow and Profitability: Since the income statement is not filed, obtain detailed profit and loss data and cash flow statements to evaluate operational performance and cash generation ability.
• Review Director Changes and Ownership Concentration: Understand the rationale behind director resignations and the recent consolidation of ownership, including any impact on company strategy and financial backing.
• Evaluate Asset Valuation and Stock Realizability: Confirm the valuation of stock at £100,000 and trade debtors at £323,594 to ensure these are not overstated and are collectible or saleable at stated values.
• Consider Impact of Hire Purchase Obligations: Review terms of hire purchase contracts totaling £14,625 (current and non-current) to understand future cash outflows and asset encumbrances.