OTTOLENGHI HOMEWARE LIMITED

Executive Summary

OTTOLENGHI HOMEWARE LIMITED demonstrates a pattern of negative net assets and relies heavily on its parent company for financial support, which introduces a medium level of risk. While compliance and audit quality are positive, the lack of standalone profitability and liquidity raises solvency concerns that warrant further investigation into group support arrangements and operational cash flows. Investors should conduct thorough due diligence on group accounts and intercompany financing to fully understand the risk profile.

OTTOLENGHI HOMEWARE LIMITED - Analysis Report

Company Number: 12951174

Analysis Date: 2025-07-20 17:35 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing negative net current assets and negative shareholders' funds over the reported periods, indicating a reliance on external group support and potential solvency concerns. However, it remains active with no overdue filings and benefits from parent company backing, which mitigates immediate risk.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: The company has net current liabilities of £1,393 (2022) and shareholders’ funds of -£1,393, reflecting a recurring deficit position and potential liquidity constraints.
• Dependence on Group Support: The directors explicitly state the company is reliant on financial support from Ottolenghi Limited, suggesting limited standalone operational cash flow and solvency risk if group support were withdrawn.
• No Revenue or Profit Data Disclosed: The absence of turnover and profit/loss figures in the accounts limits assessment of operational performance and sustainability.

3. Positive Indicators:

• Timely Compliance: All statutory accounts and confirmation statements are up to date with no overdue filings or penalties noted.
• Unqualified Audit Report: The latest accounts were audited with an unqualified opinion, lending credibility to the financial information presented.
• Strong Group Ownership and Control: 75-100% ownership by Ottolenghi Group Limited, which appears to have substantial financing arrangements, including significant borrowing facilities, potentially supporting the subsidiary’s ongoing operations.

4. Due Diligence Notes:

• Review the consolidated group accounts of Ottolenghi Group Limited and Ottolenghi Limited to assess the financial health and support capacity of the parent and fellow subsidiaries.
• Investigate the terms and extent of financial support provided by Ottolenghi Limited, including any loan arrangements, guarantees, or intercompany balances.
• Obtain or request management accounts or turnover figures for OTTOLENGHI HOMEWARE LIMITED to evaluate operational performance and cash flow generation more accurately.
• Monitor changes in working capital and any material increases in liabilities or related party debts that could impact liquidity.