Company Number: 13037393

Analysis Date: 2025-07-19 12:56 UTC

1. Risk Rating: HIGH
   Lune Vale Property Ltd exhibits significant solvency and liquidity concerns based on the latest financial data. The company has substantial negative net current assets and shareholders’ funds, indicating that liabilities far exceed assets. This presents a high risk that the company cannot meet its obligations without additional financing or restructuring.

2. Key Concerns:

• Severe Negative Net Current Assets: The company’s net current liabilities are £84,411 as of 30 November 2023, worsening from £77,768 the previous year, signaling increasing liquidity strain and potential cash flow problems.
• Negative Shareholders’ Funds: With shareholders’ funds at -£84,511, the company has an accumulated deficit, suggesting it has been incurring losses since inception and may struggle to attract investment or credit.
• Concentration of Debt to Directors and Related Parties: £61,056 owed to directors and £22,000 to related undertakings constitute a large portion of current liabilities, raising questions about the company’s ability to operate independently and potential risks if these loans are called in.

3. Positive Indicators:

• No Overdue Filings: The company has complied with its statutory filing deadlines for both accounts and confirmation statements, indicating good governance in regulatory compliance.
• Active Status and No Liquidation: The company remains active and is not subject to any insolvency proceedings, which suggests ongoing operations despite financial challenges.
• Small Company Exemption Usage: The company files under the small companies regime, which may reduce administrative burden and costs.

4. Due Diligence Notes:

• Examine Underlying Causes of Losses: Investigate the reasons for persistent negative equity and whether the company’s business model in the "Other accommodation" sector (SIC 55900) is viable long-term.
• Review Director Loan Terms and Repayment Plans: Understand the terms of the director’s loan and related party debts, including whether they are interest-bearing, repayable on demand, or subject to any restructuring agreements.
• Assess Cash Flow Projections: Given the minimal cash balance (£325), evaluate short-term liquidity plans and whether the company has access to additional funding or credit facilities.
• Confirm Operational Activity and Revenue Streams: Limited financial disclosures and lack of income statement data require further inquiry to assess operational sustainability and revenue generation.
• Check for Potential Related Party Transactions: Scrutinize any transactions with directors or related parties for potential conflicts or financial dependence.