CompaniesInTheUK

WATERSIDE CLASSICS LIMITED

Company number SC189261 ·

Active - Proposal to Strike off

This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.

Investment Risk Analysis: WATERSIDE CLASSICS LIMITED

1. Risk Rating: HIGH

Justification: The company is subject to a proposal to strike off from the Companies House register, has overdue accounts, and exhibits significant related-party financial entanglement. While the balance sheet shows positive net assets, the strike-off action represents an existential threat to corporate continuity and raises serious concerns about ongoing solvency and operational intent.

2. Key Concerns

Concern 1: Active Proposal to Strike Off

This is the most critical red flag. A "Proposal to Strike Off" indicates an application has been made to dissolve the company. This process can be initiated voluntarily by the director or compulsorily by a third party (e.g., a creditor). If the company is struck off, its assets may vest in the Crown, and legal existence ceases. This fundamentally undermines any investment thesis.

Concern 2: Overdue Accounts with Minimal Filing Requirements

The accounts for year ending 31 July 2023 are overdue, with a deadline of 31 July 2025 having passed. Given the company files as a micro-entity with the most minimal disclosure requirements, failure to meet even these reduced obligations suggests either administrative neglect or intentional avoidance. This compounds the strike-off concern—non-filing can be a precursor to dissolution.

Concern 3: Director's Outstanding Loan of £106,413

The accounts reveal a persistent director loan balance of £106,413 owed by Mr. D.R. Reid to the company, unchanged between 2022 and 2023. Against share capital of only £100, this represents a material related-party balance. The static nature suggests no repayment is occurring, raising questions about whether this is genuinely recoverable or represents an effective extraction of value.

3. Positive Indicators

  • Positive Net Assets Position: Shareholders' funds of £822,527 indicate the company is not technically insolvent on a balance sheet basis.

  • Strong Liquidity Coverage: Net current assets of £1,373,023 against current liabilities of only £167,500 provides approximately 9:1 current ratio coverage, suggesting minimal short-term creditor pressure.

  • Long Operating History: Incorporated in 1998, the company has survived multiple economic cycles, suggesting some underlying business resilience.

  • Significant Balance Sheet Improvement: Net assets grew from approximately £331k-392k (2014-2020) to over £822k by 2023, indicating a material strengthening of the financial position in recent years.

4. Due Diligence Notes

Item Investigation Required
Strike-off origin Determine whether this is a voluntary application by the director or a compulsory action by a creditor or third party. Check the Gazette for the strike-off notice.
Long-term liabilities The £890,617 in creditors due after more than one year has remained static since at least 2022. Identify the creditor—is this a related party, a secured lender, or trade creditor? The nature of this debt fundamentally affects risk assessment.
Director's loan recoverability Assess whether the £106,413 is secured, the terms of repayment, and whether any provisions against recoverability should be made.
Business activity clarification The SIC codes suggest car sales (45111) and miscellaneous services (96090), yet the asset base appears more consistent with property holding. Clarify the actual trading activity.
Asset composition Current assets of £1.54M and fixed assets of £340k—what comprises these? Is there stock (vehicles), property, or intercompany balances? The micro-entity accounts provide no breakdown.
Cash position Historical cash data shows £171,903 (2020) declining—current cash position is unknown from the 2023 filing.
Confirmation statement While not overdue, verify the PSC register accuracy and confirm no recent changes to control structure.
Creditors' position on strike-off Any creditor can object to a strike-off. Given £890k+ in long-term liabilities, ascertain whether the major creditor(s) are aware and their position.

Perspective: Investment Risk Assessor · Model: glm-5.1 · Generated 29 July 2026