L.W INVESTMENT (ABERDEEN) LIMITED

Executive Summary

L.W Investment (Aberdeen) Limited faces high solvency and liquidity risks due to significant negative working capital and reliance on a director's loan. While the company holds a tangible investment property asset and maintains regulatory compliance, limited financial disclosure and dependency on related-party funding raise concerns about operational sustainability and short-term financial stability. Further due diligence on asset valuation, profitability, and loan terms is recommended.

L.W INVESTMENT (ABERDEEN) LIMITED - Analysis Report

Company Number: SC685534

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, evidenced by net current liabilities of approximately £140k against minimal current assets (£4k). The large director's loan repayable on demand (£130k) and consistent negative working capital highlight liquidity concerns. While the company holds investment property, it is valued at cost with no indication of market appreciation or liquidity, limiting its immediate cash conversion potential.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£144,632) substantially exceed current assets (£4,183), indicating potential difficulty in meeting short-term obligations.
• Director's Loan Dependency: A sizeable loan from the director (£130,829), repayable on demand, underpins much of the company's liabilities, creating dependency risk and potential pressure on cash flow.
• Lack of Profit and Income Disclosure: Absence of an income statement and limited financial detail restrict assessment of operational performance and profitability, obscuring business sustainability evaluation.

3. Positive Indicators:

• Investment Property Asset: The company holds an investment property valued at £192,930, providing a tangible asset base and potential for rental income or capital appreciation.
• Compliance with Filings: Accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance discipline.
• Single Director with Full Control: Ownership and control are consolidated with the director, which can facilitate swift decision-making.

4. Due Diligence Notes:

• Verify Market Value and Liquidity of Investment Property: Confirm independent valuation and potential to realise cash if required.
• Assess Profitability and Cash Flows: Obtain full income statement and cash flow statements to understand operational performance and sustainability.
• Examine Director's Loan Terms: Clarify conditions and any risk of repayment demand that could impact liquidity.
• Review Business Model and Revenue Streams: Confirm nature and stability of rental income or other revenue sources given the SIC codes related to real estate activity.