LITTLE WHITE COTTAGES LIMITED

Executive Summary

Little White Cottages Limited is a micro-entity in the real estate sector exhibiting significant financial distress characterized by negative net assets and substantial current liabilities exceeding current assets. While operational compliance is maintained and fixed assets exist, the company’s liquidity and solvency risks are elevated, warranting further investigation into asset realizability and business sustainability.

LITTLE WHITE COTTAGES LIMITED - Analysis Report

Company Number: 13254262

Analysis Date: 2025-07-20 17:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with negative net current assets and net liabilities that have worsened from the prior year. This indicates an inability to meet short-term obligations and an overall negative equity position.

2. Key Concerns:

• Negative Net Current Assets: The company had net current liabilities of approximately £289k as of 31 March 2023, worsening from £279k the previous year, signaling liquidity pressure.
• Negative Net Assets: The net liabilities increased to £14.7k in 2023 from £5.1k in 2022, indicating deteriorating solvency and shareholder value erosion.
• Minimal Share Capital and No Employees: With only £2 share capital and zero employees, the operational scale is very limited, which may not support sustainable business operations or generate sufficient cash flow.

3. Positive Indicators:

• No Overdue Filings or Compliance Issues: The company is active and up to date with accounts and confirmation statement filings, showing regulatory compliance.
• Ownership of Fixed Assets: The company holds fixed assets worth £274k, which could provide collateral or value in restructuring scenarios.
• Stable Directorship: The same two directors have been in place since incorporation, which may indicate stable governance at the management level.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to assess their liquidity and realizable value.
• Review cash flow statements and creditor schedules for details on how current liabilities arose and the company’s ability to meet them.
• Clarify the company’s business model and revenue generation capability given the micro entity status and lack of employees.
• Assess any contingent liabilities or off-balance-sheet obligations not reflected in the limited accounts.
• Understand the directors’ plans or commitments to address the negative equity and liquidity issues.