WEST END TRADING LLP

Executive Summary

West End Trading LLP has a solid fixed asset base but carries significant secured debt and net current liabilities, leading to medium solvency and liquidity risk. The absence of profitability data restricts a full operational assessment, though regulatory compliance is satisfactory. Further financial details are recommended to fully evaluate its stability and ongoing viability.

WEST END TRADING LLP - Analysis Report

Company Number: OC442073

Analysis Date: 2025-07-29 16:04 UTC

1. Risk Rating: MEDIUM
   The company shows a significant level of secured debt relative to its tangible assets, with net current liabilities and a decline in net assets. However, it holds substantial fixed assets (land and buildings) valued at £8.53 million, which provide a strong asset base to cover long-term liabilities. The presence of mortgage-secured debts and net current liabilities indicates moderate solvency and liquidity risk.

2. Key Concerns:

• Liquidity Position: The company has net current liabilities (£2,500 negative in 2024) despite minimal short-term creditors, suggesting limited short-term cash or liquid assets to meet immediate obligations.
• High Long-Term Secured Debt: Mortgages of £4.18 million are significant against total tangible assets, implying potential refinancing or repayment pressures.
• Absence of Profit and Loss Data: The accounts do not include an income statement, limiting insight into operational cash flow, profitability, and ongoing sustainability.

3. Positive Indicators:

• Strong Asset Base: Tangible fixed assets are substantial (£8.53 million), providing collateral and long-term value stability.
• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, indicating good regulatory adherence.
• Experienced Members: The designated members have been in place since incorporation, suggesting stable governance.

4. Due Diligence Notes:

• Obtain and review the company's management accounts or cash flow statements to assess operational cash generation and liquidity more accurately.
• Investigate the terms, maturity, and covenants of the secured mortgage debt to evaluate refinancing risk.
• Clarify the nature of the business and revenue streams, as the absence of turnover and profit data in the accounts limits operational risk assessment.
• Confirm whether any contingent liabilities or off-balance-sheet commitments exist that could impact financial stability.