Investment Risk Assessment — LEDGERITE LIMITED (Company No. 03564420)

1. Risk Rating

LOW — but with a material caveat on investability.

On a pure solvency and going-concern basis, the company presents minimal balance-sheet risk: it records no liabilities, no creditors, no borrowings and no trading activity. Shareholders' funds have been static at £100 for the entire ten-year history available, and filings are current with no overdue accounts or confirmation statement.

However, this is a dormant, non-trading entity whose stated principal activity is "holding property as nominee for others." It is not an operating business and generates no revenue, cash flow or distributable earnings. The low solvency risk reflects an absence of activity rather than financial strength. For an institutional investor, the relevant risk is not insolvency but lack of substance and lack of transparency around the nominee arrangement.

Important qualification: the assessment below is based solely on filed statutory data. The dataset does not include charges/mortgage registers, group structure, or director disqualification records, so the absence of adverse findings should not be read as confirmation that none exist.

2. Key Concerns

a) No operational substance or earnings capacity The profit and loss account states explicitly that the company "has not traded during the year," received no income and incurred no expenditure. The sole recorded asset is £100 of other debtors. There is no cash, no fixed assets, no stock and no working capital cycle. The entity cannot service debt, fund distributions, or support a valuation on any earnings or asset basis.

b) Off-balance-sheet exposure via the nominee role The principal activity is holding property as nominee for others. Assets held in a nominee capacity are, by design, not reflected on the company's balance sheet — and neither, typically, are the obligations attaching to them. Any mortgages, guarantees, rent-free obligations, dilapidations, or third-party indemnities connected to those properties would not appear in these dormant accounts. The £100 balance sheet is therefore not a measure of the company's true economic exposure. This is the single most significant unknown in the file.

c) Thin disclosure and layered control The company claims audit exemption under s480 (dormant companies) and files under the small companies regime; the accounts are unaudited and contain no cash flow statement, no contingent liability note, and no related-party disclosure. Control is also layered: Xxxxxx Xxxxxxxxname shown to subscribers holds 50–75% "as a member of a firm," while Xxxxxx Xxxxxxxxname shown to subscribers is registered as having significant influence or control and is the sole serving director. The identity, solvency and beneficial ownership of the firm through which the majority interest is held are not disclosed in the data provided. The company secretary's nationality is recorded as unknown — a minor but relevant KYC gap.

3. Positive Indicators

• Long-established entity: incorporated 14 May 1998, with over 27 years of continuous registration.
• Clean filing record: accounts and confirmation statement both current, nothing overdue; the most recent accounts were signed and authorised by the director.
• No liabilities on record: no creditors, borrowings, or negative net assets in any of the ten years presented. Shareholders' funds have remained positive and unchanged at £100 throughout.
• Compliance formalities observed: audit exemption correctly claimed and disclosed under s480; accounts prepared under FRS 102 Section 1A; director's responsibilities statement included.
• No insolvency events: status is Active, not in liquidation, administration or receivership, and no overdue filings that would indicate distress.
• Stable capital structure: 100 ordinary £1 shares, fully paid, unchanged across the period reviewed.

4. Due Diligence Notes

1. Obtain the declaration of trust / nominee agreement. Identify precisely which properties are held, for which beneficial owners, and on what terms. This is essential to understanding the company's real exposure.
2. Search the Companies House charges register. No charge data is included in the material provided. Confirm whether any legal charges, debentures or cross-guarantees exist, particularly over nominee-held property.
3. Verify the PSC chain. Establish the identity, ownership and financial standing of the firm through which Xxxxxx Xxxxxxxxname shown to subscribers holds his 50–75% interest, and clarify the basis of Xxxxxx Xxxxxxxxname shown to subscribers's "significant influence or control."
4. Reconcile the filing dates. The overview records accounts last made up to 31 March 2026, while the latest accounts text supplied is for the year ended 31 March 2025. Confirm the 2026 accounts have in fact been filed and review them.
5. Confirm the "never traded" status against the stated activity. The filing tags indicate the entity has never traded, yet its principal activity is property nominee holding. Clarify the historical activity and check for previous names, which are not included in the data.
6. Screen the officers. Conduct independent disqualification and adverse media checks on both Xxxxxx Xxxxxxxxname shown to subscribers and Xxxxxx Xxxxxxxxname shown to subscribers; the dataset provided does not include conduct records, so this has not been verified.
7. Establish the purpose of the vehicle. If the intent is to invest via or alongside this entity, the investment thesis must rest on the underlying property and its beneficial owners — not on this company's statutory accounts, which carry effectively no analytical content.

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