SANDYLANE LIMITED

1. Risk Rating: HIGH
Based on the most recently filed accounts (period ended 31 December 2024), Sandylane Limited has net liabilities of £124,254, negligible cash of £249, and current liabilities exceeding current assets. The company also reported an average of zero employees, down from 53 in the prior period, which raises serious questions about whether active operations continue. Without evidence of group support or committed refinancing, the company is unlikely to meet its obligations as they fall due.

2. Key Concerns

• Solvency deterioration
  Shareholders’ funds moved from £30,376 positive at 31 July 2023 to negative £124,254 at 31 December 2024. The balance sheet is now insolvent on a book-value basis, with current liabilities of £352,466 against total current assets of £228,214.

• Critical liquidity position
  Cash at bank fell from £64,653 to just £249. The company cannot fund even modest working capital needs from its own resources. Trade debtors have reduced to nil, suggesting revenue collection has ceased or operations have wound down.

• Apparent cessation of operations
  The accounts state average employees during the period were NIL, compared with 53 in the previous year. No fixed assets appear in the latest balance sheet, and no income statement has been filed due to the small companies regime. For a residential care business, zero staff strongly implies the care operations are no longer being run by this entity.

• Large “other creditors” balance
  Creditors due within one year include £352,466 classed as “other creditors.” There is no disclosure in the abbreviated accounts of whether these liabilities are related-party balances, bank debt, or third-party obligations, nor whether they are repayable on demand. This is a material transparency gap.

3. Positive Indicators

• The company is long-established, having been incorporated in July 2000, and it maintained positive shareholders’ funds and reasonable cash levels throughout the 2015–2022 period.
• Filing compliance appears current: accounts and confirmation statement are not shown as overdue.
• The company has a clear controlling shareholder, Ridings Care Limited, and an ultimate controlling party, Ms E Xxxxxxxname shown to subscribers. This may provide a route for group support, although no guarantee is visible in the filed accounts.
• Stock of £227,965 exists and could have realisable value, but its composition and liquidity are unclear and should not be presumed.

4. Due Diligence Notes

• Request management accounts and a cash flow forecast for the period after 31 December 2024. Establish whether the company is trading, in run-off, or effectively dormant.
• Obtain a breakdown of the £352,466 “other creditors.” Confirm whether these are owed to Ridings Care Limited or other group entities and whether repayment is formally subordinated or deferred.
• Investigate the 17-month reporting period (1 August 2023 to 31 December 2024) and the reason for the significant change in reporting date.
• Clarify the nature and recoverable value of the £227,965 stock. If this represents care home property held for sale, independent valuation is essential.
• Review group financial statements for Ridings Care Limited and any intra-group guarantees, intercompany balances, or security arrangements.
• Check the Companies House charges register for any debentures, fixed charges, or other security that may affect asset recovery.
• Confirm whether the company’s CQC registration or other care regulatory approvals are active, suspended, or surrendered.

Names of the people mentioned are shown to subscribers. See subscription