Company Number: 13801874

Analysis Date: 2025-07-29 20:19 UTC

1. Risk Rating: HIGH
   Given the significant negative net current assets position exceeding £7 million in both 2023 and 2024, the company exhibits a clear solvency risk. Current liabilities substantially exceed current assets, indicating potential difficulties meeting short-term obligations despite positive net assets on a longer-term basis.

2. Key Concerns:

• Liquidity Deficit: Net current liabilities of approximately £7.1 million as of March 2024, worsening slightly from prior year, signals poor short-term liquidity and risk of cash flow stress.
• High Short-Term Creditors: Creditors due within one year exceed £7.8 million, which is disproportionate given the current asset base of £660k and cash of £234k.
• Related Party Balances: Significant debtor balance (£174k) due from a related company under common control raises questions on recoverability and potential group financial interdependencies that may impact liquidity.

3. Positive Indicators:

• Investment Property Assets: The company holds investment property valued at £7.7 million, providing a substantial asset base which could be leveraged or sold if necessary.
• No Overdue Filings: Accounts and confirmation statement filings are up to date, demonstrating regulatory compliance and good governance practices.
• Single Director with Full Control: The company’s control is consolidated under a single director and a related holding company, which can allow streamlined decision making.

4. Due Diligence Notes:

• Verify the nature and terms of the £7.68 million “other creditors” classified as current liabilities to assess repayment profile and any potential restructuring risks.
• Investigate the recoverability and terms of the £174k related party debtor balance, including any repayment arrangements or contingent liabilities.
• Confirm valuation methodology and market comparables for the investment property to assess asset liquidity and potential for monetization under distress.
• Review cash flow forecasts and any financing arrangements supporting the company’s ability to meet short-term liabilities.
• Assess the background and financial strength of the parent holding company (Ryder Property Investments Holdings Ltd) given its controlling interest.