WENTWORTH HOLLAND LLP

Executive Summary

Wentworth Holland LLP shows high investment risk driven by recurring losses, zero turnover, and minimal liquidity buffers, raising solvency and operational concerns. Regulatory compliance is maintained, but detailed scrutiny of debtor collectability, creditor composition, and business viability is essential before considering financial engagement.

WENTWORTH HOLLAND LLP - Analysis Report

Company Number: OC438103

Analysis Date: 2025-07-29 17:40 UTC

1. Risk Rating: HIGH
   The LLP displays significant financial stress characterized by recurring operating losses, substantial liabilities nearly matching current assets, and no reported turnover. These factors raise concerns about solvency and operational sustainability.

2. Key Concerns:

• Recurring Losses: The LLP reported a pre-members' remuneration loss of £134,176 for the year ended June 2023, worsening from a £57,680 loss the previous year, indicating ongoing unprofitability.
• No Turnover: The company generated no turnover in the reported periods, suggesting an absence of active revenue-generating operations.
• Working Capital Tightness: Current assets (£541,036) barely exceed current liabilities (£531,036) by £10,000, implying minimal liquidity buffer to meet short-term obligations. Large debtors and creditors balances suggest potential cash flow timing risks.

3. Positive Indicators:

• No Overdue Filings: Annual accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Capital Contribution: There is £10,000 of members' capital reflecting some equity cushion, though minimal.
• Experienced Membership: Designated members and members have long-standing involvement since incorporation in 2021, providing some continuity in governance.

4. Due Diligence Notes:

• Investigate the nature and collectability of the large debtor balances (£349k in 2023 down from £892k prior), as these significantly impact liquidity.
• Clarify the composition of the substantial current liabilities (£531k), particularly the "other creditors" (£530,500), to assess creditor risk and payment terms.
• Understand the business model and reasons behind zero turnover despite operating for over two years, including whether financing debt portfolios is generating cash inflows off-balance sheet or through related entities.
• Review members' intentions regarding capital injections or restructuring plans given recurring losses and tight liquidity.
• Confirm whether the LLP is reliant on external financing or member loans not disclosed in the accounts.

Executive Summary:
Wentworth Holland LLP exhibits high financial risk due to persistent operating losses, no reported turnover, and marginal net current assets, which together indicate potential challenges in meeting obligations and sustaining operations. Timely filings and modest capital contributions reflect compliance and some member commitment, but significant due diligence is warranted to understand cash flow dynamics and creditor exposure.