NDS COMMERCIAL HOLDINGS LTD

Executive Summary

NDS Commercial Holdings Ltd is a newly established private limited company with a modest equity base and investment property assets. While the company maintains compliance with filing requirements and holds tangible assets, its leveraged position, related party loans, and lack of operational income suggest medium risk requiring further due diligence. Investors should focus on the company’s debt obligations, asset valuations, and business model clarity to assess long-term viability.

NDS COMMERCIAL HOLDINGS LTD - Analysis Report

Company Number: 15336282

Analysis Date: 2025-07-29 16:28 UTC

1. Risk Rating: MEDIUM

Justification: NDS Commercial Holdings Ltd is a newly incorporated private limited company with a relatively small share capital of £200 and total net assets of approximately £224k as at 30 November 2024. The company holds investment properties valued at £276k and has current liabilities close to its current assets, resulting in a modest net working capital. The presence of long-term bank loans and related party loans with no repayment terms introduces some financial risk. However, there is no indication of overdue filings or insolvency proceedings, and the company appears compliant with statutory requirements.

2. Key Concerns:

• Leverage and Debt Structure: The company carries significant long-term bank loans (£168k) relative to its equity and asset base, which may strain future cash flows, especially given its early stage and modest capital.
• Related Party Loans: Outstanding amounts due to directors (£9,202) and a subsidiary (£6,640) with no formal repayment terms or interest could complicate financial stability and governance.
• Lack of Turnover and Operational History: The absence of reported turnover and employees suggests the company is in an early development phase or holding assets rather than trading, raising questions about operational sustainability and cash flow generation.

3. Positive Indicators:

• Strong Asset Backing: The company owns investment properties valued at £276k, providing a tangible asset base underpinning its balance sheet.
• Positive Net Assets: Net assets and shareholder funds stand at £224k, indicating an equity buffer above liabilities.
• Compliance and Timely Filings: Accounts and confirmation statements are up to date with no overdue filings, demonstrating good governance and regulatory compliance.

4. Due Diligence Notes:

• Verify details and terms of bank loans, including maturity dates, covenants, and repayment schedules.
• Assess the nature, market valuation, and income-generating potential of the investment properties held.
• Clarify the operational model of the company—whether it is actively trading or primarily a holding entity—and confirm sources of cash flow.
• Examine the rationale and governance surrounding related party transactions and loans to ensure transparency and arm's length treatment.
• Investigate any contingent liabilities or off-balance-sheet commitments not disclosed in the accounts.