LYDGATE PROPERTY GROUP LTD

Executive Summary

Lydgate Property Group Ltd is a newly incorporated private limited company holding significant investment property assets but currently showing net liabilities and substantial long-term debt. The absence of reported trading activity and negative shareholders’ funds highlight high solvency and liquidity risks. While compliance with filings is current and asset backing exists, significant due diligence is required to evaluate operational viability and debt servicing capacity.

LYDGATE PROPERTY GROUP LTD - Analysis Report

Company Number: 14705701

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

1. Risk Rating: HIGH

   Justification: The company exhibits significant solvency risk, with net liabilities of £8,383 against total assets of £463,584. Current liabilities are modest (£471), but long-term creditors amount to £471,967, predominantly secured bank loans. The negative shareholders' funds and net liabilities at such an early stage since incorporation indicate financial strain. The absence of turnover or trading data and the company's very recent incorporation (March 2023) further contribute to uncertainty.

2. Key Concerns:

   • Negative Net Assets and Shareholders' Funds: The company shows net liabilities (£8,383), indicating that liabilities exceed assets, raising solvency and capital adequacy concerns.
   • High Long-Term Debt: Bank loans of £334,067 and other creditors of £137,900 falling due after more than one year represent a substantial debt burden relative to current assets and cash reserves.
   • No Revenue or Profit Data Reported: The absence of an Income Statement and no employees suggest the company may not yet be operational or generating income, raising liquidity and operational sustainability questions.

3. Positive Indicators:

   • Investment Property Asset: The company holds investment property valued at £461,410, which is a tangible and potentially income-generating asset.
   • No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with statutory requirements.
   • Single Controlling Director/Shareholder: Mr. William Nixon controls 75-100% of shares and voting rights, which may facilitate swift decision-making.

4. Due Diligence Notes:

   • Verify the nature and terms of the bank loans and other creditors, including repayment schedules and security arrangements.
   • Obtain the company's business plan or forecasts to assess expected cash flows and the strategy for servicing debt and generating revenue.
   • Confirm whether the investment property is generating rental income or other returns, and if there are any encumbrances or valuation uncertainties.
   • Investigate the absence of an Income Statement and trading activity to understand operational status and prospects.
   • Assess the director's background and capacity to manage the company given the financial position and early stage of operations.