Company Number: 13585907

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: MEDIUM
   Pinto Holdings Limited demonstrates improved solvency as of the latest accounts date, with positive net assets of £136,354 in 2023 after prior years of negative equity. However, substantial current liabilities relative to current assets and minimal cash reserves present liquidity concerns. The company is young (incorporated 2021) and holds significant investment property assets, which adds operational stability but also valuation risk.

2. Key Concerns:

• Liquidity Risk: Cash on hand is only £446 against current liabilities of £258,787, and net current liabilities are £131,997, indicating potential short-term cash flow constraints.
• Related Party Debt: A large interest-free intercompany liability of £252,809 owed to a related company, Environmental Renaissance Limited, could indicate dependency or potential risk if repayment terms change.
• Director Resignation/Changes: The only director listed, Frank Murphy, resigned in May 2025; current director structure and governance need confirmation to assess continuity and compliance.

3. Positive Indicators:

• Improved Solvency: The company moved from negative shareholders' funds (£-1,121 in 2022) to positive equity (£136,354 in 2023), primarily driven by recognition of investment property valued at £268,251.
• Investment Property Asset: The company’s fixed assets largely comprise investment property valued on an open market basis, which could provide long-term capital appreciation and potential rental income.
• Compliance: Accounts and confirmation statement filings are up to date, with no overdue filings or reported regulatory issues.

4. Due Diligence Notes:

• Verify the nature and collectability of the debtor balance (£126,344), as it constitutes the majority of current assets and is unusually high relative to prior year.
• Investigate the terms and stability of the related party loan (£252,809), including repayment schedules and intercompany agreements.
• Confirm current director(s) status following resignation noted in May 2025 and review governance arrangements to ensure compliance with Companies House requirements.
• Assess valuation methodology and frequency of investment property revaluation to understand potential volatility in asset base.
• Review cash flow projections and working capital management plans to address liquidity gap.