Company Number: 12613335

Analysis Date: 2025-07-29 14:27 UTC

1. Risk Rating: MEDIUM
   The company shows positive net asset growth and owns significant investment property assets, but current liabilities and intercompany loans raise potential liquidity and related-party risk concerns.

2. Key Concerns:

• Liquidity Position: While net current assets are positive at £32,635 (2024), the company’s cash balance is modest (£10,467), and there is a reliance on debtors (notably directors’ current accounts of £34,434) which may affect near-term cash flow.
• Related Party Loans & Intercompany Balances: Substantial loans to directors (£34,435 combined) and to related parties (Delamore Farms Limited and estate of Mr. C. Delamore) total over £100,000, with no fixed repayment dates. This concentration poses repayment and governance risks.
• Limited Share Capital: With only £100 share capital, the company’s equity is primarily retained earnings and reserves, which may limit external capital buffer in adverse conditions.

3. Positive Indicators:

• Asset Base & Solvency: Net assets increased from £558,850 (2023) to £567,864 (2024), supported by stable investment property valuations (£645,919) that provide a solid asset backing.
• Timely Filings & Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Operational Scale: The company maintains a small employee base (2 employees), consistent with its micro/small company status, suggesting controlled operating expenses.

4. Due Diligence Notes:

• Review the collectability and aging profile of debtor balances, particularly directors’ current accounts and related party loans, to assess liquidity risk and potential impairments.
• Examine terms and conditions of intercompany and director loans, including any security or repayment plans, to evaluate exposure to related party risk.
• Analyze cash flow statements and management forecasts (not filed) for insight into operational cash generation and ability to service current liabilities and loan obligations.
• Investigate valuation methodology and market conditions for investment properties to confirm asset stability and realizable values.
• Confirm any contingent liabilities or provisions not disclosed that might affect financial position.