ANDERSON FAMILY LLP

Executive Summary

Anderson Family LLP is a newly formed property investment LLP with a strong fixed asset base but limited operating history and low current liquidity. The business is primarily financed through members’ capital, with modest rental income insufficient to cover liabilities without member support. Credit approval is conditional and should be re-assessed upon stabilization of rental income and confirmation of asset valuations.

ANDERSON FAMILY LLP - Analysis Report

Company Number: OC437514

Analysis Date: 2025-07-29 20:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Anderson Family LLP is a recently established property investment entity with limited operating history and modest turnover (£5,961 for the period ended 31 March 2024). The firm holds significant fixed assets (£620,000 investment property) but has minimal current liquidity and net current liabilities of £2,100. Given the limited trading history and low cash flow, credit exposure should be cautiously considered and ideally secured against the tangible investment property asset. Approval is conditional on further information on rental income stability, property valuation certainty, and assurances on members’ financial backing.

2. Financial Strength:
   The LLP’s balance sheet shows a strong asset base dominated by investment property valued at £620,000. However, there are no other significant current assets and current liabilities stand at £2,100, resulting in negative net current assets. The members’ interests are recorded as loans and debts amounting to £617,900, indicating that the business is largely capitalised by members’ funds rather than external borrowing. The absence of external debt reduces risk but also means that liquidity depends heavily on members’ continued support.

3. Cash Flow Assessment:
   Turnover generated from rental income is low at under £6,000 for the reporting period with operating profit before members’ remuneration at £3,235. There are no employees, and administrative expenses are moderate (£2,726). The LLP’s working capital position is negative, which suggests limited short-term liquidity. The business appears reliant on members’ capital contributions and potentially further injections to fund operations or meet liabilities. Cash flow from operations is currently insufficient to cover liabilities without member support.

4. Monitoring Points:

• Rental income growth and stability: Monitor turnover trends to ensure consistent cash inflows from property investments.
• Investment property valuation: Regular independent revaluation to confirm asset backing for credit facilities.
• Members’ capital contributions and drawings: Track capital movements to assess funding stability and risk exposure.
• Liquidity and current liabilities: Watch net current asset position and ability to meet short-term obligations without distress.
• Any new borrowing or changes in creditor profile: Changes could affect financial risk and repayment capacity.