Company Number: OC434059

Analysis Date: 2025-07-29 16:27 UTC

1. Risk Rating: HIGH
   The company shows a balance sheet with current assets exactly equal to current liabilities, resulting in zero net current assets and net liabilities attributable to members. The company has no net equity and depends entirely on member support. This situation signals significant solvency and liquidity risk.

2. Key Concerns:

• Zero Net Current Assets and Negative Net Equity: Current assets (£3,026,563) equal current liabilities (£3,026,563), leaving no working capital buffer. The net liabilities attributable to members indicate insolvency on a balance sheet basis.
• High Debtor Concentration: Debtors total £2.8M, nearly 93% of current assets, with no indication of collectability or aging. This concentration in receivables may pose liquidity risk if collections are delayed or impaired.
• No Operating Income or Profit & Loss Statement: The accounts exemption means no income statement was filed, and no employees are reported. This lack of operational data impedes assessment of business sustainability and cash flow generation.

3. Positive Indicators:

• Timely Filing and Compliance: The company is active, with no overdue accounts or confirmation statements, indicating compliance with statutory obligations.
• Stable Cash Position: Cash balances have remained steady at approximately £224k over multiple years, suggesting some liquidity cushion is maintained.
• Member Support: The designated members have confirmed going concern status, implying ongoing financial support or backing.

4. Due Diligence Notes:

• Obtain detailed aged debtor schedules to assess collectability and risk of bad debts.
• Request management or member confirmations regarding the nature of the large receivables and creditor balances.
• Seek access to any internal management accounts or cash flow forecasts to evaluate operational cash generation and sustainability.
• Investigate the business model and revenue generation since no income statement is available.
• Confirm the status and financial strength of the designated members (Rougemont Limited and Rougemont Estates Limited) to understand their capacity to support the LLP.