OBTAINSTAND LIMITED

Risk Rating: LOW The company exhibits a robust equity position with net assets of £459,044 against minimal total liabilities of £28,198 (comprising £14,865 current and £13,333 long-term). As a property holding and letting entity with substantial tangible assets and low leverage, the solvency risk is negligible. However, a notable decline in cash reserves and an implied operating loss in the latest period introduce moderate liquidity and operational concerns that prevent a risk-free assessment.

Key Concerns: - Declining Cash Reserves: Cash at bank has decreased significantly over the past five years, falling from £108,758 in 2019 to £20,257 in 2024. While current liabilities are low, this sustained cash erosion reduces financial flexibility and may indicate underlying operational cash flow pressures. - Implied Trading Loss / Reduction in Net Assets: Net assets fell by £40,707 between 2023 and 2024 (from £499,751 to £459,044). Given that the property asset is held at historical cost and depreciation accounts for only £9,869 of the reduction, this implies a significant operating loss or a write-down of other balances during the period. - Concentration of Assets: The company's asset base is heavily concentrated in a single property asset (Land & Buildings at £444,085 net book value). This lack of diversification means the company's financial health is highly exposed to the specific localized real estate market conditions and the physical condition of this single asset.

Positive Indicators: - Strong Solvency Position: Shareholders' funds stand at £459,044 against total liabilities of just £28,198. The company possesses a substantial equity cushion, rendering insolvency risk extremely low. - Low Financial Leverage: Long-term bank loans have been reduced to £13,333, and current debt obligations are minimal (£10,000 bank loan due within one year). The property appears to be largely unencumbered, suggesting low debt-servicing risk. - Regulatory Compliance: The company has a long history (incorporated in 1993) and is fully compliant with its filing obligations. Accounts and confirmation statements are up to date with no overdue items noted.

Due Diligence Notes: - Source of Net Asset Decline: Investigate the underlying cause of the £40,707 drop in net assets for the 2024 period. As the profit and loss account has not been delivered to the Registrar, the specific nature of this loss (e.g., void rental periods, unexpected maintenance costs, or write-offs) is not publicly transparent. - "Other Debtors" Analysis: The latest accounts show "Other debtors" falling due within one year halved from £41,549 to £20,000. Determine if this represents a related-party loan being repaid or a reversal of an asset, and how this impacts future cash inflows. - Operational Viability: With an average of 0 employees, assess how the property is managed and maintained. Verify if rental income is sufficient to cover ongoing maintenance, director remuneration, and tax liabilities, given the declining cash position. - Director Dynamics: Clarify the involvement of all appointed directors. While Hugh Kelly and Linda Money are Persons with Significant Control (PSCs) and active directors, Paul Money is also listed as a current director but was not the signatory to the accounts. Ensure this aligns with governance expectations.