SALT HEATH ESTATE LTD

Executive Summary

Salt Heath Estate Ltd shows significant financial distress, with negative net assets and working capital deficits raising high solvency and liquidity risks. While the company complies with filing requirements and holds fixed assets, absence of employees and unclear operational activity pose concerns for business sustainability. Further investigation into asset realizability and cash flow is recommended to better understand the company’s financial viability.

SALT HEATH ESTATE LTD - Analysis Report

Company Number: 14282858

Analysis Date: 2025-07-29 20:57 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current assets, indicating liabilities exceed assets and current obligations are not sufficiently covered by current assets. This points to significant solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: The net liabilities stood at £83,217 as of 31 August 2024, worsening from the prior year, signaling deteriorating financial health.
• Negative Working Capital: Net current liabilities of approximately £242,536 suggest the company may struggle to meet short-term obligations as they fall due.
• Lack of Operating Revenue or Employees: The accounts report zero employees and do not indicate revenue, which raises questions about operational sustainability and cash flow generation.

3. Positive Indicators:

• No Overdue Filings: The company is current on both accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Fixed Assets Present: The company holds fixed assets valued at around £160k, which could potentially be leveraged or sold to improve liquidity.
• Recent Incorporation with Micro Entity Status: Being a micro entity reduces reporting burdens and may indicate a nascent stage of business development.

4. Due Diligence Notes:

• Investigate the nature and valuation of the fixed assets to assess their liquidity and realizable value.
• Review cash flow statements or management accounts (if available) for cash inflows and outflows, as the accounts do not disclose this.
• Clarify the business model and revenue streams given the absence of employees and apparent operational activity, to determine sustainability prospects.
• Confirm whether the negative net asset position is due to initial start-up losses or other factors such as accumulated unpaid liabilities.
• Assess director and shareholder support mechanisms, including any commitments to inject additional capital or guarantees.