NEOM FACILITIES MANAGEMENT LTD

Executive Summary

Neom Facilities Management Ltd, a recently incorporated private company, faces significant liquidity and solvency challenges with negative net current assets and a heavy reliance on related party creditors. While the company holds a valuable investment property and maintains regulatory compliance, the current financial structure raises high risk concerns for creditors and investors. Further due diligence on related party transactions and cash flow management is essential to assess operational sustainability.

NEOM FACILITIES MANAGEMENT LTD - Analysis Report

Company Number: 15242439

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant liquidity and solvency concerns with net current liabilities of £326,917 against cash holdings of only £7,709. The current liabilities (£334,626) far exceed current assets, indicating potential difficulty in meeting short-term obligations. Additionally, net assets and shareholders funds are minimal, reflecting a weak financial position despite holding investment property.

2. Key Concerns:

• Liquidity Risk: The company’s cash position is extremely low relative to current liabilities, posing a risk of cash flow shortfalls.
• Solvency Risk: Negative net current assets suggest potential challenges in meeting debts as they fall due, raising concerns about ongoing financial viability.
• Related Party Creditors: A large portion (£311,505) of creditors are amounts owed to participating interests, which could indicate reliance on related party financing and possible governance or financial stability issues.

3. Positive Indicators:

• Investment Property Asset: The company holds an investment property valued at £333,000, providing a substantial fixed asset base which may support future refinancing or asset-backed lending.
• No Overdue Filings: Both accounts and confirmation statements were filed on time, indicating compliance with statutory requirements.
• Clear Ownership and Control: The two directors each hold 25-50% share and voting control, suggesting stable ownership without complex PSC structures.

4. Due Diligence Notes:

• Investigate the nature and terms of amounts owed to participating interests to assess related party risk and repayment likelihood.
• Review cash flow forecasts and working capital management plans to evaluate how the company intends to address current liabilities.
• Confirm valuation methodology for investment property and the realizability of this asset in a distressed scenario.
• Assess directors’ plans for improving profitability or capital structure given the negative retained earnings and minimal net assets.
• Verify absence of contingent liabilities or off-balance sheet obligations that could exacerbate financial risks.