V4P (BLACKPOOL SQUIRES GATE) NEWCO LIMITED

Executive Summary

V4P (Blackpool Squires Gate) Newco Limited demonstrates weak liquidity and no active trading, with large current liabilities vastly exceeding minimal current assets and cash. Despite a solid investment asset base, the company lacks operational cash flow to service short-term obligations, presenting a high credit risk. Given these factors, new credit facilities are not advisable without significant changes in trading activity or liquidity support.

V4P (BLACKPOOL SQUIRES GATE) NEWCO LIMITED - Analysis Report

Company Number: 13787565

Analysis Date: 2025-07-20 17:06 UTC

1. Credit Opinion: DECLINE
   V4P (Blackpool Squires Gate) Newco Limited shows a significant working capital deficit (£125,018 net current liabilities at 2024 year-end) with current liabilities far exceeding current assets, primarily due to large payables to related parties and deferred consideration. The company has no trade debtors and minimal cash (£50), indicating very limited liquidity to meet short-term obligations. Although there is a substantial investment asset reported (£374,000), these are non-liquid and not readily available to cover immediate debts. The company’s classification as a non-trading entity and zero employees also suggests no active revenue-generating operations, undermining its ability to service debts or generate cash flows. The recent full repayment of bank borrowings removes one risk but does not compensate for the ongoing liquidity strain. Overall, the financial profile indicates high credit risk and insufficient cash flow to support new credit facilities.

2. Financial Strength:
   The company’s net assets improved to £248,982 in 2024 from £40,207 in 2023, driven by an increase in investment in joint ventures. However, the balance sheet is skewed by large current liabilities (£125k) against negligible current assets (£50), resulting in a poor liquidity position. The absence of fixed assets aside from investments and no operating assets or employees further weakens financial flexibility. The equity base is small (£60 share capital plus premium), and retained earnings have grown mainly through investment revaluation or capital contributions rather than operating profits, which raises concerns about sustainability.

3. Cash Flow Assessment:
   Cash on hand is minimal (£50), and there are no trade receivables at the 2024 year-end, indicating a lack of operational cash inflows. The large current liabilities, especially amounts owed to related parties (£86,290), are likely payment deferrals rather than trade payables, which may signal funding through related entities rather than external cash generation. The repayment of bank loans during the year suggests cash outflows but no replacement borrowing, further tightening liquidity. The company’s zero employee count and non-trading SIC code imply no active operations generating cash, raising significant concerns about short-term liquidity and cash flow sufficiency.

4. Monitoring Points:

• Liquidity position: Monitor current assets versus current liabilities, especially related party payables.
• Operational activity: Watch for any changes in trading status or revenue generation to improve cash flows.
• Debt levels: Ensure no new borrowings are taken on without clear repayment prospects.
• Investment valuation: Track the recoverability and valuation of the joint venture investments.
• Directors’ actions: Observe any related party transactions or capital injections that could affect financial stability.