Risk Analysis: TILTON DEVELOPMENTS LIMITED (06056518)

1. Risk Rating: HIGH

Justification: The company is subject to an active proposal to strike off, has overdue statutory accounts, carries extreme leverage (liabilities approximately 17x net assets), and demonstrates no visible revenue generation or cash reserves. The static balance sheet with unchanged debtors across two consecutive years raises serious questions about asset quality and ongoing trading activity.

2. Key Concerns

a) Active Strike-Off Proceeding The company status of "Active - Proposal to Strike off" is the most critical red flag. This indicates either a voluntary application by the director to dissolve the company, or a compulsory strike-off initiated by Companies House (typically for non-compliance with filing obligations). Combined with overdue accounts, this suggests the company may be in the process of being wound down or has failed to meet regulatory obligations. Any creditor or counterparty exposure could be at risk if dissolution proceeds.

b) Extreme Leverage and Thin Capitalisation Total liabilities of approximately £287,325 (current: £243,817 + non-current: £43,508) sit against net assets of just £17,084. This represents a leverage ratio of approximately 16.8:1. Share capital stands at a nominal £4 with retained earnings of £17,080. The company is overwhelmingly debt-financed, with £240,445 in bank loans/overdrafts due within one year. Any deterioration in asset values or inability to refinance would render the company insolvent.

c) Questionable Asset Quality – Static Debtors The entire asset base of £304,409 consists of "Other debtors" – a single unexplained debtor balance that has remained exactly £304,409 in both 2024 and 2023. This stability is highly unusual for a trading entity and raises concerns about: - Whether this represents a genuine trade debtor or an inter-company/related party balance - Whether the debt is collectible or should be impaired - Whether the company is actively trading at all, given no revenue data is disclosed

No other current assets (cash, stock) are reported, and no cash position has been disclosed since 2017.

3. Positive Indicators

a) Consistent Positive Net Asset Position The company has maintained positive net assets since 2017, gradually improving from £317 to £17,084. While modest, this trajectory suggests the company has not been destroying value in recent years.

b) Longevity and Continuity Incorporated in 2007, the company has operated for 17+ years. The sole director, Dr David Tilbury, has maintained continuity throughout, with no disqualification records apparent.

c) No Immediate Insolvency Indicators in Balance Sheet Net current assets remain positive at £60,592, and total assets exceed total liabilities. On a balance sheet basis alone, the company is technically solvent.

4. Due Diligence Notes

a) Nature and Recoverability of the £304,409 Debtor This is the single most important item to investigate. Who owes this money? Is it a related party? Is there any provision for impairment? The static nature across two years suggests this may be an inter-company loan rather than a trade debtor. If this debt is irrecoverable, the company is immediately insolvent.

b) Strike-Off Circumstances Determine whether this is a voluntary strike-off (DS01 process) initiated by the director, or a compulsory strike-off by Companies House for non-filing. If compulsory, this signals governance failure. If voluntary, understand the plan for settling the £287k+ in liabilities before dissolution can proceed. Any creditor can object to the strike-off.

c) Overdue Accounts Accounts were due by 31 October 2025 and are marked as overdue. Confirm whether these have since been filed. Persistent non-filing can result in fines, director penalties, and ultimately compulsory strike-off – which may be what is already occurring.

d) Banking Facilities and Security With £283,953 in bank loans (current + non-current), clarify the terms, security provided, and whether facilities are being called in. The gradual reduction in non-current bank loans (from £47,422 to £43,508) suggests amortisation, but the significant current portion suggests refinancing risk.

e) Related Party Transactions As a single-director, >75% controlled company with no apparent trading activity, investigate whether the company exists primarily as a vehicle for related party lending or property holding. Full accounts (if obtainable) should disclose related party balances.

f) Confirmation Statement Status While not currently overdue, verify that the confirmation statement filing remains on track, as non-compliance here would compound the regulatory concerns.