WHITENING YARD PROPERTIES LTD

Executive Summary

Whitening Yard Properties Ltd, a recently incorporated property investment company, shows early signs of financial distress with net liabilities and a significant working capital deficit. Although supported by a sizeable investment property asset and timely statutory compliance, reliance on a substantial related party loan repayable on demand raises liquidity and solvency risks that warrant close examination. Further due diligence on loan terms, asset valuation, and cash flow is advised before considering investment exposure.

WHITENING YARD PROPERTIES LTD - Analysis Report

Company Number: 14816951

Analysis Date: 2025-07-19 13:03 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and significant current liabilities exceeding current assets, indicating solvency concerns. The presence of a large related party loan repayable on demand with interest further amplifies liquidity risk.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities of £38,220 suggest that liabilities exceed total assets, a clear solvency red flag.
• Working Capital Deficit: Net current liabilities of approximately £1.09 million imply potential liquidity constraints to meet short-term obligations.
• Related Party Loan Exposure: Over £1.02 million owed to a related company controlled by directors, repayable on demand with 5% interest, poses refinancing and cash flow risk if repayment is demanded unexpectedly.

3. Positive Indicators:

• Substantial Investment Property Asset: Fixed assets largely comprise an investment property valued at approximately £1.05 million, which may provide collateral or future income potential.
• Timely Compliance: All accounts and confirmation statements are filed on time with no overdue filings, indicating good governance on statutory matters.
• Experienced Management Team: Directors are all resident at the same address, suggesting consolidated control and potentially aligned interests.

4. Due Diligence Notes:

• Examine Related Party Loan Terms: Confirm the loan’s repayment schedule, conditions under which repayment may be demanded, and assess the company’s ability to service interest and principal.
• Assess Investment Property Liquidity and Market Value: Verify the valuation methodology and marketability of the investment property to determine if it could be monetized if required.
• Review Cash Flow Projections: Given the negative working capital, detailed cash flow forecasts are essential to understand how the company plans to meet its short-term liabilities.