Company Number: 15047690

Analysis Date: 2025-07-29 14:16 UTC

1. Risk Rating: MEDIUM
   Justification: WESTBROOK CAPITAL LTD shows a strong net asset position and substantial current assets relative to liabilities, indicating solvency. However, the company is newly incorporated with unaudited accounts and a significant debtor balance largely due from related parties, which raises liquidity and operational risk concerns.

2. Key Concerns:

• Concentration Risk: Debtors of £11.33m represent the majority of current assets and appear to be related party loans, creating exposure if repayment is delayed or impaired.
• Related Party Debt: The company owes directors nearly £965k interest-free and repayable on demand, potentially indicating informal financing arrangements that may impact future cash flows or governance.
• Lack of Audit and Short Operating History: Being a first-year company with unaudited accounts limits financial transparency and increases uncertainty about operational stability and controls.

3. Positive Indicators:

• Strong Net Current Assets: Net current assets of over £10m substantially exceed current liabilities of £1.1m, suggesting good short-term solvency.
• Shareholder Support: Share capital of nearly £9.85m indicates strong initial equity funding, which enhances capital structure and solvency.
• Compliance: All statutory filings are up to date with no overdue accounts or confirmation statements, signaling sound regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature, terms, and collectability of the large debtor balance, particularly the related party loans, to assess liquidity risks and impairment likelihood.
• Clarify the context and terms of the directors’ loan of £964,936 to the company, including repayment plans and impact on cash flow.
• Review internal controls and governance practices given the unaudited status and related party transactions.
• Assess business model sustainability and revenue generation plans given the company’s very recent incorporation and limited operational history.
• Confirm underlying contracts or agreements supporting interest receivable income mentioned in accounting policies.