Company Number: 14820485

Analysis Date: 2025-07-20 11:03 UTC

1. Risk Rating: HIGH
   Mance Rowe Ltd exhibits significant solvency and liquidity concerns as evidenced by negative net assets and severely negative net current assets shortly after incorporation. The company’s liabilities substantially exceed its current assets and shareholders’ funds, indicating elevated financial risk.

2. Key Concerns:

• Negative Net Assets: The company reports net liabilities of £10,293 despite holding investment properties valued at £181,396, showing overall financial distress.
• Poor Liquidity Position: Current liabilities of £106,957 far exceed current assets of £125, resulting in a negative working capital of £106,832, which undermines the company’s ability to meet short-term obligations.
• High Leverage: Substantial bank loans amounting to £96,916 (split between short and long-term) relative to minimal equity (£2 share capital) suggest heavy reliance on debt financing, increasing risk of insolvency.

3. Positive Indicators:

• Investment Property Asset: The company holds an investment property valued at £181,396, which could provide future income or capital gains if the market conditions are favorable.
• Compliance with Filings: All statutory filings, including accounts and confirmation statements, are up to date with no overdue submissions, indicating sound regulatory compliance and governance practices.
• Experienced Directors: Both directors have been in place since incorporation and have direct control, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Verify the nature and marketability of the investment property and assess whether it can be readily converted to cash to address liabilities.
• Investigate the terms of bank loans and other creditors, including interest rates, covenants, and repayment schedules, to evaluate refinancing or default risks.
• Review cash flow forecasts and business plans to understand how the company intends to improve liquidity and solvency given the current financial position.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Assess the background and financial standing of the directors and shareholders to understand their capacity to support the company financially if needed.