Investment Risk Analysis: OAKMONT CONSTRUCTION LIMITED

1. Risk Rating: HIGH

The company's status is recorded as "Liquidation" at Companies House, which represents the most severe risk indicator possible for any investment assessment. Regardless of the relatively positive financial position shown in the last filed accounts (December 2020), the fact that the company is undergoing a formal closure process renders any historical financial data largely academic. Additionally, both annual accounts and confirmation statements are overdue, eliminating visibility into the company's current financial position.

2. Key Concerns

a) Company in Liquidation The Companies House status is unequivocally recorded as "Liquidation." This means the company is under a formal insolvency process, and control of assets and operations has passed to a liquidator. The nature of the liquidation (voluntary vs. compulsory) is not specified in the available data, but either scenario represents a terminal or near-terminal event for the business as a going concern.

b) Severe Financial Deterioration in 2020 The financial trajectory between 2019 and 2020 is deeply concerning: - Total assets fell from £9.46M to £6.10M (a 36% decline) - Net assets/shareholders' funds dropped from £4.16M to £1.55M (a 63% decline) - Cash decreased from £4.34M to £2.45M (a 44% decline)

The strategic report confirms a "substantial trading loss" during 2020, directly attributed to COVID-19 disruptions and client project deferrals.

c) Overdue Filings and Lack of Current Visibility Both the annual accounts (due 30 September 2022) and confirmation statement (due 13 February 2023) are overdue. There is no financial data beyond 31 December 2020—nearly four years of operational opacity. This makes it impossible to assess the company's current financial position from filed records.

3. Positive Indicators

a) Historical Cash Reserves As of December 2020, the company held £2.45M in cash, which represented approximately 40% of total assets. The strategic report notes that over £1M of additional cash working capital was deliberately retained due to pandemic concerns, suggesting management took a conservative approach to liquidity.

b) Positive Strategic Outlook (as of 2020 reporting) The 2020 strategic report described the outlook as "very positive," citing the strongest-ever pipeline of secured new work and forecasting record turnover. The company had also successfully entered the data centre sector—a growth market.

c) Employee Ownership Structure The sale of shares to an Employee Ownership Trust (completed summer 2020) was framed as a succession-planning outcome designed to protect company culture and values. This structure can incentivise employee retention and long-term thinking, though it also introduces complexity around governance and decision-making.

4. Due Diligence Notes

a) Clarify Liquidation Status as a Matter of Urgency The single most important item to establish is the precise nature of the liquidation. Is this a Members' Voluntary Liquidation (solvent) or a Creditors' Voluntary Liquidation (insolvent)? Was it compulsory? The liquidation type fundamentally determines whether there are any recoverable assets for creditors or shareholders. Request the liquidator's details and initial progress reports from Companies House.

b) Investigate the Employee Ownership Trust Transaction The sale to an EOT in summer 2020 raises several questions: - Was the transaction at fair market value? - How was the sale funded? If debt-funded within the company, this could have strained cash reserves. - Did the EOT structure contribute to the subsequent liquidation? - What happened to the founding shareholders' loan accounts or other balances upon exit?

c) Obtain Recent Financial Information Given that filed accounts are over three years overdue, approach the liquidator directly for any available management accounts, statement of affairs, or progress reports. The Insolvency Service may also hold relevant documentation.

d) Director Conduct Review Six current directors remain listed. Investigate whether any directors have prior disqualifications or involvement with other insolvencies. Cross-reference Andrew David Kimpton and Lorraine Christine Kimpton (who together hold majority control via PSC registrations) for other directorships and insolvency histories.

e) Asset Realisation and Creditor Position The 2020 balance sheet showed total liabilities of £4.69M against total assets of £6.10M. Determine: - The current realisable value of assets (particularly construction work-in-progress and debtors) - Whether preferential or secured creditors exist - The position of unsecured creditors, including any HMRC liabilities