WINDSLADE PARTNERS LTD

Executive Summary

Windslade Partners Ltd shows high solvency risk primarily due to substantial current liabilities vastly exceeding current assets, heavily reliant on a large directors' loan. While the company holds valuable investment property and maintains regulatory compliance, its minimal equity and negative working capital raise significant liquidity concerns. Further due diligence on asset valuation, loan arrangements, and cash flows is essential to assess operational stability and financial resilience.

WINDSLADE PARTNERS LTD - Analysis Report

Company Number: 14501961

Analysis Date: 2025-07-29 12:35 UTC

1. Risk Rating: HIGH
   The company exhibits a high solvency risk due to significant current liabilities vastly exceeding current assets, leading to substantial net current liabilities. The large directors' loan balance further compounds financial risk despite being interest-free and repayable on demand.

2. Key Concerns:

• Negative Working Capital: Current liabilities of £918,385 overshadow current assets of £34,554, resulting in net current liabilities of approximately £883,831, indicating potential liquidity and short-term funding difficulties.
• Directors' Loan Liability: £687,907 owed to directors represents a sizeable related party liability that could be called in at any time, creating uncertainty for external creditors and cash flow stability.
• Minimal Equity Base: Shareholders’ funds stand at only £307, which is negligible relative to liabilities and assets, suggesting very limited buffer to absorb losses or adverse events.

3. Positive Indicators:

• Investment Property Asset: The company holds an investment property valued at £884,138, which forms the majority of total assets and may provide collateral or value realization opportunities.
• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time and the company is active with no overdue filings or liquidation status.
• Experienced Directors & Clear Ownership: Three directors with full appointments and transparent ownership structure with three individuals holding between 25-50% share and voting rights each.

4. Due Diligence Notes:

• Valuation and Liquidity of Investment Property: Verify the current market value, liquidity, and encumbrances on the property to assess realistic asset backing.
• Terms and Stability of Directors’ Loans: Clarify repayment terms, potential for conversion to equity, or refinancing plans to mitigate solvency risk.
• Cash Flow Projections: Obtain management forecasts to understand how operational cash flow will cover current liabilities.
• Operational Business Model: Review revenue streams, tenant agreements (if property leased), and any operational expenses impacting sustainability.
• Related Party Transactions: Examine the nature and risk of related party balances and any conflicts of interest.