MONTARE NEWHALL LIMITED

Executive Summary

Montare Newhall Limited exhibits moderate liquidity supported by improving current assets but carries a persistent negative equity position and significant long-term liabilities that raise solvency concerns. Absence of profit and cash flow information limits full assessment of operational stability. The company maintains timely filings and low operational overhead, warranting further due diligence on financial performance and debt obligations.

MONTARE NEWHALL LIMITED - Analysis Report

Company Number: 13438438

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: MEDIUM
   The company shows increasing current assets and net current assets, indicating some liquidity strength. However, persistent negative shareholders' funds (net liabilities) and substantial creditors due after more than one year raise solvency concerns. The absence of an income statement limits visibility on profitability and cash flow trends.

2. Key Concerns:

• Negative Equity: Shareholders' funds remain negative (£-16,370 in 2024), indicating accumulated losses or capital deficiencies which may impair solvency if not resolved.
• Long-term Liabilities: Creditors falling due after more than one year total £3.59 million (2024), a significant obligation relative to net assets that could pressure liquidity if refinancing or repayment terms are onerous.
• Lack of Profit and Cash Flow Data: The financial statements exclude an income statement, restricting assessment of operational performance and sustainability. Without this, it is difficult to gauge ongoing profitability or cash generation.

3. Positive Indicators:

• Growing Current Assets and Net Current Assets: Current assets increased from £2.61 million (2023) to £4.18 million (2024), improving working capital to £3.88 million, which suggests the company can meet short-term liabilities.
• Timely Filing and Compliance: Latest accounts and confirmation statements are filed on time with no overdue notices, indicating good regulatory compliance and governance.
• No Employees: The company reported zero employees for both years, implying a low fixed cost base which may support operational flexibility and cost control.

4. Due Diligence Notes:

• Obtain and review the income statement and cash flow statement to evaluate profitability, cash flow adequacy, and operating performance.
• Clarify the nature and terms of the long-term creditors (£3.59 million) to assess refinancing risk and repayment capacity.
• Investigate reasons for persistent negative equity and whether there are plans or injections of capital to restore positive net assets.
• Confirm the company’s business model and revenue streams within construction of domestic buildings (SIC 41202) to understand operational sustainability.
• Review director changes and any potential impact on governance or strategic direction, noting one director resigned in December 2024.