THE MYSTERY BAYLEAF LIMITED

Executive Summary

THE MYSTERY BAYLEAF LIMITED shows a strong asset base dominated by listed investments but is burdened by significant short-term liabilities owed to directors, leading to net current liabilities and potential liquidity risk. While regulatory filings are timely and net assets have improved, limited operational data and reliance on director funding present concerns warranting further investigation. Overall, the company’s solvency appears adequate but liquidity and operational sustainability require close scrutiny.

THE MYSTERY BAYLEAF LIMITED - Analysis Report

Company Number: 12782514

Analysis Date: 2025-07-29 16:44 UTC

1. Risk Rating: MEDIUM
   Justification: The company maintains positive net assets and holds substantial listed investments valued at approximately £1.38 million. However, it carries significant short-term liabilities amounting to over £1.4 million, primarily debts owed to directors, resulting in large net current liabilities. The absence of audit and limited operational scale warrant caution.

2. Key Concerns:

• High Short-Term Liabilities to Directors: £1.398 million owed to directors represents over 99% of current liabilities, indicating reliance on director funding rather than external finance or operational liquidity.
• Net Current Liabilities: The company has negative working capital of approximately £1.26 million, suggesting potential liquidity constraints in meeting short-term obligations.
• Limited Operational Evidence: The company employs only 2 people (including directors) and operates in a niche SIC code (82990) with minimal disclosed turnover or profit data, limiting assessment of operational sustainability.

3. Positive Indicators:

• Substantial Listed Investments: Investment assets valued at £1.38 million provide a strong asset base that could be liquidated if necessary to meet obligations.
• Positive Net Assets: Shareholders’ funds have increased from £15.9k to £121.4k year-on-year, evidencing some capital growth.
• Timely Compliance: No overdue filings for accounts or confirmation statements, suggesting good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Review the nature and terms of the director loans: Are these loans repayable on demand? Are they interest-bearing? What is the repayment plan?
• Obtain detailed income and cash flow statements to assess operational cash generation and sustainability beyond balance sheet position.
• Verify valuation methodology and liquidity of the listed investments to confirm realizable value and potential to cover liabilities if needed.
• Confirm if there are any contingent liabilities or related party transactions not disclosed.
• Assess the company’s business model and client base to determine future revenue prospects.