TOOGOOD ESTATES LIMITED

Executive Summary

Toogood Estates Limited demonstrates concerning financial stress with negative equity and significant long-term liabilities exceeding fixed assets, posing solvency and liquidity risks. However, the company maintains compliance with filing requirements and stable asset holdings. Further investigation into debt terms and cash flow sustainability is advised to fully assess operational viability.

TOOGOOD ESTATES LIMITED - Analysis Report

Company Number: 13722174

Analysis Date: 2025-07-29 15:54 UTC

1. Risk Rating: HIGH
   The company exhibits a net liabilities position with shareholders’ funds negative and current liabilities substantially exceeding current assets. The fixed asset base is heavily leveraged with long-term creditors, indicating solvency risk.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities increased from -£7,400 to -£11,867 as of March 2024, signaling erosion of equity capital and potential solvency issues.
• High Long-Term Liabilities: Creditors falling due after more than one year total approximately £380k against fixed assets of £368k, indicating reliance on debt financing that exceeds tangible asset backing.
• Minimal Liquidity: Current assets (cash and equivalents) are extremely low (£998), while current liabilities are significant, raising concerns on the company’s ability to meet short-term obligations without additional funding.

3. Positive Indicators:

• Timely Filings: Accounts and confirmation statements are up to date, reflecting good regulatory compliance and corporate governance practices.
• Stable Fixed Asset Base: The fixed assets have remained constant, suggesting no impairment or disposals, which may represent stable underlying real estate holdings.
• Experienced Directors: Both directors are longstanding and resident at the company address, indicating committed management oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities to assess refinancing risk and creditor arrangements.
• Review cash flow projections and any external funding arrangements to understand short-term liquidity management.
• Examine the valuation and marketability of fixed assets to determine recoverability and collateral value.
• Evaluate the business model sustainability given the negative equity and whether operational cash flows can support ongoing obligations.
• Confirm any contingent liabilities or off-balance sheet obligations not apparent in the accounts.