WAYSIDE PROPERTY HOLDINGS LTD

Executive Summary

WAYSIDE PROPERTY HOLDINGS LTD maintains a strong asset base and complies with regulatory requirements, but recent financial performance shows a significant impairment and loss, reducing net assets. The payment of dividends despite losses and impairment raises liquidity and capital preservation concerns. Further review of subsidiary health and cash flow is recommended to assess ongoing operational and financial stability.

WAYSIDE PROPERTY HOLDINGS LTD - Analysis Report

Company Number: 14365280

Analysis Date: 2025-07-20 13:51 UTC

1. Risk Rating: MEDIUM
   The company shows strong net asset backing primarily through investment properties and subsidiary holdings, suggesting solvency. However, the recent significant impairment loss and declining net assets warrant caution.

2. Key Concerns:

• Decline in Net Assets: Net assets decreased from £7.25m in 2023 to £6.23m in 2024, driven by a £710k loss and £1.05m impairment on fixed asset investments, indicating potential asset value deterioration or operational challenges.
• Impairment of Subsidiary Investments: A material impairment of £1.05m on shares in subsidiaries signals possible underperformance or financial stress in related entities, which may impact future cash flows.
• Negative Profit and Dividend Payments: The company recorded a loss in the latest year yet paid dividends totaling ~£302k, which may strain liquidity or capital reserves over time.

3. Positive Indicators:

• Strong Asset Base: Total fixed assets remain substantial at £6.33m, with investment property valued on a fair market basis, supporting the company’s long-term solvency.
• Positive Net Current Assets: Despite increased current liabilities, net current assets remain positive (£50.7k), indicating adequate short-term liquidity.
• Up-to-date Compliance: No overdue filings or accounts, suggesting good regulatory compliance and governance practices.

4. Due Diligence Notes:

• Investigate the nature and cause of the impairment loss on investments, including subsidiary financial health and prospects.
• Review cash flow statements and working capital trends to assess liquidity sustainability, especially given recent losses and dividend payments.
• Confirm the valuation methods and assumptions for investment property and subsidiary investments to validate asset valuations.
• Assess the company’s dividend policy relative to profitability and cash reserves to understand risk of capital erosion.
• Examine directors’ plans or strategies addressing the loss and asset impairments to ensure operational stability.