Company Number: SO307797

Analysis Date: 2025-07-07 22:37 UTC

1. Risk Rating: LOW
   MCMARKHAM LLP shows a strong asset base with a significant investment property valued at £785,000 and positive net current assets, indicating low immediate financial risk. No overdue filings or indications of distress are present.

2. Key Concerns:

• Limited operational data: The LLP has no employees and minimal debtor turnover, indicating it may be at an early stage or lightly active, which could impact revenue generation and operational sustainability.
• Members’ loans classification: The entire net asset value is represented as “Loans and other debts due to members,” which are unsecured and rank equally with other unsecured creditors in liquidation, potentially creating risk if liquidity issues arise.
• Absence of profit and loss account: The financial statements omit the profit and loss details, limiting insight into trading performance, cash flow generation, and operational profitability.

3. Positive Indicators:

• Strong asset backing: Substantial investment property valued at £785,000 provides tangible security and capital base.
• Positive net current assets (£1,878) and low creditors suggest sound short-term liquidity.
• Compliance and governance: All statutory filings (accounts and confirmation statements) are up to date, with no overdue returns or penalties.
• Going concern adopted by members, indicating confidence in continued operation.

4. Due Diligence Notes:

• Verify the nature of the LLP’s business activity and revenue streams, given the absence of employees and limited debtor balances.
• Obtain or review internal management accounts or profit and loss data to assess operational performance and cash flow.
• Clarify the nature and terms of members’ loans—determine repayment terms and any financial commitments or restrictions associated.
• Confirm the valuation method and marketability of the investment property to assess liquidity and risk of asset impairment.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in the limited accounts.