WESTMEAD RENTALS LIMITED

Executive Summary

Westmead Rentals Limited is a newly incorporated real estate letting company exhibiting high financial risk due to negative net assets and substantial reliance on director’s loans. While compliance with statutory filings is maintained and the company holds tangible assets, the material uncertainties on going concern and liquidity shortfalls present significant concerns for investors. Further investigation into the director’s loan structure and operational cash flows is essential to determine long-term viability.

WESTMEAD RENTALS LIMITED - Analysis Report

Company Number: 14827466

Analysis Date: 2025-07-29 17:10 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by negative net assets (£-24,311) and a large deficit in net current assets (£-148,501). The director’s loan account forms the majority of current liabilities (£202,706), indicating reliance on related party funding to meet obligations. Given the company was only incorporated in April 2023 and has yet to demonstrate operational cash flow sufficiency, liquidity concerns are pronounced.

2. Key Concerns:

• Negative net assets and net current liabilities highlight an immediate solvency issue, raising doubts about the ability to meet short-term obligations without additional funding.
• Reliance on director’s loan account (£202,706) as primary source of funding suggests insufficient external financing or operational cash flow, which may not be sustainable long term.
• Going concern note in the accounts discloses material uncertainties about continuing operations, which could threaten business viability.

3. Positive Indicators:

• The company is compliant with filing requirements; accounts and confirmation statements are up to date with no overdue filings.
• The director owns 75-100% of shares and voting rights, indicating clear control and potentially easier decision-making regarding future financing or restructuring.
• The fixed asset base (£124,190) relates to tangible property which may provide collateral value or operational utility.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account to assess repayment expectations, interest terms, and potential for conversion to equity or write-off.
• Review cash flow projections and business plan to evaluate the path to operational sustainability and reduction of reliance on director advances.
• Confirm the current occupancy or leasing status of the tangible assets to determine income generation potential.
• Monitor any future filings for improvements or worsening of financial position, particularly subsequent interim management accounts if available.
• Assess any contingent liabilities or related party transactions not disclosed in the current accounts.