LINEA STRATFORD ROAD LTD

Executive Summary

LINEA STRATFORD ROAD LTD is a recently incorporated property investment company with a negative net asset position driven by significant long-term bank borrowing exceeding its asset base. While compliant with filing requirements and holding a tangible investment property, its limited liquidity and lack of operational income present moderate financial risk. Further analysis of loan terms, asset valuations, and business prospects is recommended to clarify its financial sustainability and ability to meet obligations.

LINEA STRATFORD ROAD LTD - Analysis Report

Company Number: 14460737

Analysis Date: 2025-07-29 17:40 UTC

1. Risk Rating: MEDIUM
   The company has a negative net asset position (-£47,644) due to long-term bank loans exceeding the value of its investment property and working capital. However, it holds a significant investment property asset (£300,000) and has no overdue filings, which mitigates immediate solvency concerns but suggests moderate financial risk.

2. Key Concerns:

• Negative equity position caused by bank loans (£402,900) exceeding total assets (£355,256). This indicates potential solvency risk if asset values decline or loan repayment terms tighten.
• Limited liquidity with only £3,824 cash at bank and modest current assets (£62,148) versus current liabilities (£6,892), which could challenge operational cash flow if expenses increase or debt servicing demands arise.
• No revenue or employee information disclosed; the company is newly incorporated (Nov 2022) and appears to have minimal operations beyond holding investment property, raising questions about operational sustainability and income generation.

3. Positive Indicators:

• The company is current with all statutory filings (accounts and confirmation statement), indicating compliance with regulatory requirements.
• The investment property is valued at £300,000 and carried at fair value under FRS 102, providing a tangible underlying asset base.
• Directors have not drawn remuneration, reducing immediate cash outflows and preserving liquidity.
• Related party loan to a group company (£42,941) could provide some internal financial support or flexibility.

4. Due Diligence Notes:

• Verify terms and repayment schedule of the £402,900 bank loan to assess refinancing risk and covenant compliance.
• Obtain independent valuation of the investment property to confirm fair value and marketability under current market conditions.
• Investigate the company's revenue streams, business model, and plans for generating sufficient cash flow to service debt and sustain operations.
• Review related party transactions and group structure to understand financial interdependencies and potential support mechanisms.
• Confirm no director disqualifications or adverse conduct records associated with the current directors.