Financial Health Assessment: HUNTSMERE LIMITED

1. Financial Health Score: D

Critical Condition — The patient is technically alive (solvent) but only just. Net assets have deteriorated by 99.8% over the past decade, from £2.5M to a wafer-thin £3,126. The company exists on life support from director loans and group undertakings, with virtually no organic equity remaining.

2. Key Vital Signs

Long-Term Decline Trajectory

The pattern is unmistakable: a stepwise deterioration with significant drops in 2017, 2020, 2023, and 2024. The company has lost £2.54M in net assets over nine years.

3. Diagnosis

Primary Condition: Terminal Equity Erosion with Intercompany Dependency

The financial data reveals a company that has been systematically drained of value. The diagnosis is not a sudden crisis but a chronic, progressive condition.

Symptom 1: Balance Sheet Dominated by Intercompany Balances

The 2024 balance sheet reveals an extreme dependency on group relationships:

• Debtors: £381,390 (95% of all debtors) is owed by group undertakings
• Creditors: £401,868 (100% of all creditors) is loans from the director
• Trade debtors: £0 (was £420,000 in 2023 — vanished entirely)
• Trade creditors: £0 (was £260,308 in 2023 — cleared)

Medical analogy: The company's circulatory system is entirely dependent on a transfusion from related parties. It has no independent commercial blood supply.

Symptom 2: No Operating Assets

• Fixed assets: £0 (fixtures and fittings fully depreciated)
• Trade debtors: £0
• Cash: £3,802

The company has no trading activity generating receivables. This is consistent with a property development vehicle between projects, or a company in run-off.

Symptom 3: Director as Sole Creditor

The entire creditor base of £401,868 consists of loans from the director (Xxxxxx Xxxxxxxxname shown to subscribers). This means: - The director is effectively keeping the company afloat personally - There are no external trade creditors pressing for payment - The director could demand repayment at any point, which would trigger immediate insolvency

Symptom 4: P&L Reserve Near Zero

The profit and loss reserve has fallen from £505,838 to £2,524 — a loss of £503,314 in a single year. This represents either: - Significant trading losses, or - Write-offs of intercompany balances, or - Distribution/reallocation within the group structure

Given the absence of trade debtors and creditors, this likely reflects impairment of intercompany receivables or group restructuring rather than operational trading losses.

Symptom 5: Corporate Structure Signals

• 100% owned by Luxury Personal Holdings Limited (a holding company)
• The previous name "HUNTSMERE (LIVERPOOL) LIMITED" and SIC code 41100 (Development of building projects) suggest this was a property development vehicle
• The name change in 2009 and subsequent decline may indicate a completed development being wound down
• Director resigned on 10 December 2025 (Xxxxxx Xxxxxxxxname shown to subscribers as director, though he remains as secretary) — this is a significant red flag suggesting potential restructuring or wind-down

4. Prognosis

Short-Term (6-12 months): Stable but Fragile

The company is technically solvent with net assets of £3,126. However: - Any adverse movement of even a few thousand pounds would push net assets negative - The director loan of £401,868 could be called in at any time - With only £3,802 in cash and no visible income stream, the company cannot service obligations independently

Medium-Term (1-3 years): Likely Dissolution or Restructuring

The trajectory strongly suggests this company is being wound down: - Employee count dropped from 2 to 1 - No trade debtors (no active sales) - No trade creditors (no active purchases) - No fixed assets - Director resignation in December 2025

This pattern is consistent with a group property development vehicle that has completed its purpose and is being drained of residual value before eventual dissolution.

Long-Term: Probable Dissolution

Unless new development projects are injected, this entity has no apparent reason to continue trading. The holding company (Luxury Personal Holdings Limited) appears to be consolidating or restructuring.

5. Recommendations

Immediate Actions

1. Monitor Director Loan Position: The £401,868 director loan represents both the company's lifeline and its greatest vulnerability. Clarify whether this loan is subordinated or could be called in. If called, the company is immediately insolvent.

2. Investigate the £503k P&L Decline: Determine whether this represents genuine trading losses, write-offs, or group restructuring. The nature of this loss fundamentally affects the diagnosis.

3. Assess Intercompany Receivable Recoverability: £381,390 is owed by group undertakings. If this balance is impaired or written off, net assets become significantly negative.

Structural Considerations

4. Evaluate Ongoing Purpose: With no trade activity, no fixed assets, and declining equity, question whether this company should continue. If it serves as a dormant vehicle within the group, consider formal dormancy or voluntary strike-off.

5. Director Resignation Implications: The resignation of Xxxxxx Xxxxxxxxname shown to subscribers as director on 10 December 2025 (while remaining as secretary) is a material change. Understand whether this signals a wind-down, transfer of operations, or preparation for dissolution.

6. Group Context Assessment: This company cannot be evaluated in isolation. Its health is entirely dependent on the Luxury Personal Holdings Limited group. Request group accounts or management accounts to understand the broader picture.

Risk Management

7. Insolvency Proximity Warning: With net assets of only £3,126, the company is perilously close to the insolvency threshold. Directors must be mindful of their fiduciary duties under the Insolvency Act 1986, particularly Section 214 (wrongful trading), if the company continues to trade while insolvent.

8. Filing Compliance: The 2024 accounts were approved on 22 September 2025 and are due by 30 September 2027 — the company is currently compliant, but timely filing remains important to maintain good standing.

Risk Matrix

Summary

Huntsmere Limited presents as a terminally declining entity within a group structure. The 99.4% collapse in net assets over a single year, combined with the absence of any trade activity, zero fixed assets, and total dependency on intercompany balances and director loans, indicates this is likely a completed property development vehicle being wound down. The recent director resignation reinforces this interpretation. While technically solvent at £3,126 net assets, the company has no meaningful equity buffer and exists at the pleasure of its director-creditor and parent company. Stakeholders should treat this entity as high-risk and seek clarity on the group's intentions before extending credit or entering into commercial relationships.

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