Company Number: 12734930

Analysis Date: 2025-07-29 13:04 UTC

1. Risk Rating: HIGH
   Norman Developments (NW) Limited demonstrates significant solvency and liquidity concerns, evidenced by minimal net current assets (£263 in 2024) and a steep decline in cash reserves from £32,745 in 2021 to only £375 in 2024. The company’s shareholders’ funds have eroded substantially, and it operates with very limited equity buffer, indicating elevated financial risk.

2. Key Concerns:

• Liquidity Stress: Cash on hand has fallen drastically over recent years, with only £375 available at the end of 2024, which raises concerns about the company’s ability to meet immediate financial obligations.
• Eroded Equity and Working Capital: Shareholders’ funds have declined from £18,568 in 2020 to just £263 in 2024, with net current assets barely positive, signaling tight liquidity and weak solvency.
• Declining Operational Scale: The average number of employees has dropped from 2 to 1, and the company’s work in progress (stock) is a large component of current assets relative to cash and debtors, which may indicate challenges in project completion or revenue realization.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its annual accounts and confirmation statement filings, with no overdue deadlines noted, suggesting sound regulatory compliance.
• Active Trading Status: The company remains active and continues to file unaudited abridged accounts, with no indication of formal insolvency processes such as liquidation or administration.
• Ownership and Control Transparency: The significant control structure is clearly documented, with a corporate entity holding majority shares and voting rights, and a named individual holding a minority interest.

4. Due Diligence Notes:

• Investigate the nature and realizability of stock/work in progress valued at £14,842 in 2024, which represents a large proportion of current assets, to assess if these assets can convert to cash or revenue.
• Review cash flow statements or management accounts to understand cash burn reasons and whether the company has access to additional financing or credit facilities.
• Assess the impact of the recent director resignation (Mr. Daniel James Gosling at end of 2023) on operational stability and governance.
• Clarify the relationship and financial support (if any) from the majority shareholder LN Holdings (NW) Limited, to evaluate potential backing or risk concentration.