IHESTATES LIMITED

Risk Rating: HIGH
Justification: The company reports negative shareholders’ funds for two consecutive years, with net liabilities of £133,936 at 30 April 2025. Current assets of £1,435 are insufficient to cover current liabilities of £455,704, indicating severe liquidity pressure and potential difficulty meeting obligations as they fall due. Although the company remains active and filings are current, the balance sheet trajectory is materially weakening.

Key Concerns - Balance sheet insolvency: Net liabilities have increased from £61,990 at 30 April 2024 to £133,936 at 30 April 2025, following a marginal positive net asset position of £177 at 30 April 2023. Shareholders’ funds are negative. - Acute liquidity shortfall: Current assets of £1,435 against creditors due within one year of £455,704 produce net current liabilities of £454,269. The company has minimal liquid resources to settle short-term debts. - Registered office discrepancy: The Companies House overview lists the registered address as 24 Uppingham Road, Leicester, LE5 0QD, while the filed accounts state the registered office as 67 Uppingham Road, Leicester, LE5 3TB. This inconsistency requires verification.

Positive Indicators - The company is active and is not in liquidation, administration, or receivership. - Statutory filings are up to date; neither the accounts nor the confirmation statement are overdue. - Accounts were prepared under micro-entity provisions with audit exemption claimed appropriately under the Companies Act 2006. - Fixed assets of approximately £508,084 indicate underlying property holdings consistent with the real estate activities described.

Due Diligence Notes - Confirm the valuation, nature, and marketability of fixed assets, and whether they are encumbered, given total liabilities of approximately £643,455 against total assets of £509,519. - Obtain an aged analysis of creditors due within one year, including repayment terms and any evidence of creditor pressure or enforcement action. - Resolve the registered office address discrepancy and confirm that Companies House records are accurate and up to date. - Review financing arrangements for creditors due after more than one year (£187,751), including security, interest rates, and repayment schedules. - Request cash flow forecasts and evidence of shareholder or related-party funding to cover ongoing losses and working capital deficits. - Examine related-party transactions and the concentration of control among the registered persons with significant control.