Company Number: 12992837

Analysis Date: 2025-07-29 14:55 UTC

1. Risk Rating: HIGH
   Windermere Fine Art Ltd exhibits significant liquidity concerns and net current liabilities over multiple years, indicating potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company has persistently negative net current assets (-£18,109 in 2023), which signals working capital deficits and potential cash flow problems.
• High Current Liabilities Relative to Assets: Current liabilities remain substantial (£66,684 in 2023) compared to current assets (£48,575), with reliance on directors’ loans and credit facilities.
• Limited Share Capital and Equity Base: The company has minimal share capital (£100) and low shareholders’ funds (£5,936), which may constrain its ability to absorb losses or raise equity finance.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s latest accounts and confirmation statements are filed on time, showing adherence to statutory obligations.
• Active Status and Recent Director Appointment: The company remains active with directors in place, including a new director appointed in November 2024, suggesting ongoing management engagement.
• Modest Fixed Asset Base: The company holds tangible and intangible fixed assets (£24,045 in 2023) which may provide some collateral value.

4. Due Diligence Notes:

• Investigate Cash Flow Trends: Review detailed cash flow statements and bank reconciliations to assess liquidity management and timing of cash inflows/outflows.
• Examine Composition of Current Liabilities: Assess the nature of significant creditors, particularly directors’ loans (£26,021) and credit card balances (£17,718), to understand repayment terms and risk exposure.
• Review Profitability and Revenue Streams: Since income statement data is not filed, request internal management accounts or tax computations to verify ongoing operational viability.
• Evaluate Potential Contingent Liabilities or Off-Balance Sheet Risks: Given the small equity base and negative working capital, assess any potential undisclosed liabilities or contractual obligations.
• Confirm No Director Disqualification or Regulatory Issues: Check director conduct records to ensure no governance red flags.