LIVINGTREE INVESTMENTS LIMITED

Executive Summary

Livingtree Investments Limited presents a concerning solvency profile marked by negative net assets and significant long-term liabilities, despite healthy current assets. While regulatory compliance is maintained and leadership appears stable, operational inactivity and high debt levels elevate risk for investors. Further scrutiny of debt structure and liquidity quality is recommended to determine financial sustainability.

LIVINGTREE INVESTMENTS LIMITED - Analysis Report

Company Number: 12760478

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (£-7,139) in the latest financial year despite significant current assets, indicating solvency concerns. A large long-term creditor liability (£1.4 million) outweighs total assets, signaling potential financial distress. The company’s lack of employees and limited operational data also raise sustainability questions.

2. Key Concerns:

• Negative Net Equity: The company’s net liabilities position suggests shareholders’ funds are eroded, raising doubts about its ability to absorb losses or raise further capital.
• High Long-Term Liabilities: The £1.4 million creditor due after more than one year substantially exceeds fixed and current assets, posing a risk of default or restructuring.
• Operational Inactivity: The company has zero employees and minimal turnover reported (micro-entity classification), potentially indicating limited ongoing business activity or insufficient operational cash flow to service debts.

3. Positive Indicators:

• Substantial Current Assets: The company holds £1.28 million in current assets, which may provide short-term liquidity to meet immediate obligations.
• Compliance with Filing Requirements: No overdue accounts or confirmation statements were noted, demonstrating regulatory compliance and good governance in reporting.
• Experienced Directors with Significant Control: Both directors have held control since incorporation, potentially providing stable leadership.

4. Due Diligence Notes:

• Verify the composition and terms of the £1.4 million long-term creditor liability to assess refinancing risks or repayment schedules.
• Investigate the nature of current assets (£1.28 million) for liquidity quality—e.g., cash, receivables, or inventory.
• Review cash flow statements or management accounts to ascertain ongoing operational viability and ability to service debts.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Assess directors’ plans or commitments to restore positive equity or restructure liabilities.