Risk Analysis: QUILTER CHEVIOT LIMITED

1. Risk Rating: MEDIUM

Justification: While the company benefits from a long operating history (incorporated 1985), active status, and group backing, the assessment is constrained by limited financial data visibility and recent director departures. The extremely low share capital (£159) for a fund management entity raises structural questions, though this may be typical for a subsidiary operating within a larger group structure. Without full financial statements available for review, a higher degree of uncertainty exists regarding solvency and liquidity positions.

2. Key Concerns

1. Minimal Share Capital: At £159, the share capital is negligible for a fund management business. While not uncommon for group subsidiaries, this provides virtually no equity buffer and raises questions about how the company is financed and whether it relies on intercompany arrangements or parent guarantees.

2. Recent Director Departures: Two directors resigned in late 2025 (Andrew Iain McGlone on 19 September 2025 and Ian Michael Buckley on 31 December 2025). Multiple resignations within a short period can signal governance disagreements, strategic shifts, or operational concerns that warrant investigation.

3. Limited Financial Visibility: No balance sheet, profit & loss, or cash flow data is available in the provided information. For a fund management company handling client assets, the inability to assess working capital position, net assets, and profitability represents a significant analytical gap.

3. Positive Indicators

• Long Operational History: Incorporated in 1985, the company has operated for nearly 40 years, demonstrating business longevity and survival through multiple economic cycles.

• Regulatory Compliance: Accounts and confirmation statements are filed and not overdue. The company files full accounts (rather than abbreviated), suggesting it exceeds small company thresholds or voluntarily provides greater transparency.

• Group Structure Support: Quilter Cheviot Holdings Limited holds more than 75% of shares and voting rights, with the right to appoint and remove directors. As part of the Quilter plc group (a major UK wealth management firm listed on the London Stock Exchange), there is likely parental oversight and financial support available.

• Professional Governance Infrastructure: Use of a corporate secretary (Quilter Cosec Services Limited) indicates investment in proper administrative and compliance functions.

4. Due Diligence Notes

• Financial Statements: Obtain and review the full filed accounts for at least the last three years. Focus on net assets, working capital position, profitability trends, and any going concern qualifications from auditors. For a fund management entity, also examine assets under management and revenue sustainability.

• Director Resignations: Investigate the circumstances behind the 2025 departures. Determine whether these represent planned succession, board restructuring, or potential disagreements. Review whether replacements have been or will be appointed.

• Group Structure and Intercompany Relationships: Map the full Quilter group structure. Understand the nature and terms of intercompany arrangements, loans, guarantees, or service agreements that support this subsidiary's operations. Assess whether the parent entity provides a formal guarantee or letter of comfort.

• Regulatory Standing: As a fund management company (SIC 66300), verify FCA authorisation status and any regulatory actions, complaints data, or compliance issues on the Financial Services Register.

• Share Capital Context: Clarify whether the £159 share capital is typical for this entity's role within the group structure. Many group subsidiaries operate with minimal share capital and rely on intercompany funding; understanding this dynamic is essential for solvency assessment.

• Future-Dated Filing Dates: The accounts made up to 31 December 2025 and confirmation statement to March 2026 appear to be forward-dated. Verify whether this represents a filing error, a projection, or whether the company operates on a different reporting timeline.