MOUNTAIN RIVER HOLDINGS LIMITED

Executive Summary

Mountain River Holdings Limited exhibits significant solvency and liquidity risks due to increasing net liabilities and negative working capital, primarily driven by a substantial shareholder loan. While the company maintains compliance with filing obligations and holds a significant property asset, the financial structure and lack of operational workforce raise concerns about sustainability. Further detailed review of funding arrangements and cash flow projections is essential to assess ongoing viability.

MOUNTAIN RIVER HOLDINGS LIMITED - Analysis Report

Company Number: 13136192

Analysis Date: 2025-07-29 20:50 UTC

1. Risk Rating: HIGH
   The company shows significant solvency concerns with net liabilities increasing from -£56,434 in 2023 to -£114,870 in 2024 and persistent negative net current assets. The substantial shareholder loan of £1.11 million classified as a long-term creditor with no offsetting current assets creates a risk of inability to meet short-term obligations.

2. Key Concerns:

• Negative net current assets of -£104,360 as at 31 January 2024 indicates liquidity stress and potential difficulty meeting immediate liabilities.
• Net liabilities increasing to -£114,870 suggest the company is insolvent on a balance sheet basis.
• Reliance on a large shareholder loan (£1.11 million) raises questions about the sustainability of funding and potential refinancing risk.

3. Positive Indicators:

• The company holds a tangible fixed asset, a property valued at historical cost of £1,099,490, which represents a material asset base.
• No overdue filings for accounts or confirmation statements, indicating compliance with statutory filing requirements.
• Directors have confirmed going concern basis with confidence in resources to meet liabilities for at least 12 months.

4. Due Diligence Notes:

• Investigate the nature and terms of the £1.11 million shareholder loan, including repayment plans, interest terms, and any covenants or security.
• Review cash flow forecasts and working capital management to assess the company’s ability to meet short-term liabilities.
• Obtain clarification on the absence of depreciation on the fixed asset and confirmation of its market value versus historical cost.
• Understand the company’s business plan and revenue generation prospects given zero employees and limited turnover disclosure.
• Verify directors’ assessment of going concern given the persistent net liability position.