WHETSTONE HERMITAGE LIMITED

Executive Summary

WHETSTONE HERMITAGE LIMITED exhibits a high financial risk profile due to significant liabilities relative to assets and reliance on director support for ongoing operations. While the company holds a valuable property asset and remains compliant with filing obligations, its liquidity and solvency positions warrant careful scrutiny. Further due diligence on liabilities and cash flows is recommended to better understand operational sustainability.

WHETSTONE HERMITAGE LIMITED - Analysis Report

Company Number: 12737498

Analysis Date: 2025-07-29 12:09 UTC

1. Risk Rating: HIGH

Justification: The company displays a precarious financial structure characterized by current liabilities (£750,687) vastly exceeding current assets (£47,315) leading to negative working capital, despite a modest improvement in net current assets. The company’s net assets are marginal (£22,040) relative to the scale of liabilities, indicating a highly leveraged position. The dependency on director support for going concern status also signals elevated financial risk.

2. Key Concerns:

• Liquidity Risk: The current liabilities significantly exceed current assets, which raises concerns about the company’s ability to meet short-term obligations without external support.
• Solvency Risk: The presence of long-term creditors (£750,687) nearly equaling fixed assets suggests heavy indebtedness and limited equity buffer.
• Going Concern Reliance: The financial statements explicitly state the company depends on continued director support, implying potential risk if such support were withdrawn.

3. Positive Indicators:

• Asset Base: Ownership of a freehold property valued at £741,896 provides substantial tangible asset backing.
• Compliance Status: No overdue filings or accounts, indicating timely regulatory compliance.
• Operational Activity: An increase in current assets and net assets from prior years suggests some financial improvement.

4. Due Diligence Notes:

• Investigate the nature and terms of the substantial creditor liabilities (both current and long-term) to understand repayment schedules and covenants.
• Review cash flow statements or management accounts to assess actual liquidity and cash generation.
• Confirm the extent and form of director support, including any formal guarantees or funding arrangements.
• Assess the market value and liquidity of the fixed asset (freehold property) to verify asset realizability.
• Consider obtaining more detailed information on revenue, expenses, and profitability trends beyond the micro-entity accounts.