DPS TENANT MANAGEMENT LLP

Executive Summary

DPS Tenant Management LLP exhibits a stable asset base dominated by investment property valued at £6.08 million, with no filing compliance issues. However, liquidity appears constrained due to minimal current assets and cash relative to liabilities, and the significant bank loan requires further scrutiny. Overall, the company's solvency hinges on asset values and loan servicing capacity, meriting medium risk consideration pending deeper financial and operational review.

DPS TENANT MANAGEMENT LLP - Analysis Report

Company Number: OC437135

Analysis Date: 2025-07-20 18:57 UTC

1. Risk Rating: MEDIUM
   The company holds significant fixed assets (investment property valued at £6.08 million) and positive net assets (£3.76 million), indicating substantial capital backing. However, current liabilities appear understated in the detailed notes relative to the summary figure, and the presence of a sizable long-term bank loan (£2.3 million) warrants caution. The limited liquidity reflected by low current assets and cash balances relative to liabilities elevates the risk profile to medium.

2. Key Concerns:

• Liquidity Constraints: Current assets (£36k) and cash (£11.7k) are minimal compared to current creditors (£36k) and the significant bank loan (£2.3 million), potentially straining short-term cash flows.
• Loan Repayment Obligations: The large long-term bank loan of £2.3 million represents a significant financial commitment; details on repayment terms and covenant compliance are not provided, which could impact solvency if cash generation is insufficient.
• Limited Operational Scale: The LLP reports no employees and minimal turnover details, suggesting it may be a holding or property management entity with limited operational cash flow, increasing dependency on asset values and external financing.

3. Positive Indicators:

• Strong Asset Base: Investment property valued consistently at £6.08 million provides a solid asset foundation and potential collateral for financing.
• No Overdue Filings: Both annual accounts and confirmation statements are filed on time, reflecting good regulatory compliance and governance.
• Stable Membership & Control: The same three designated members/managers have been in place since incorporation, indicating stable governance without director turnover risks.

4. Due Diligence Notes:

• Review detailed loan agreement terms for the £2.3 million bank loan including maturity, interest rates, covenants, and repayment schedules.
• Assess rental income or other cash inflows tied to the investment property to evaluate liquidity sustainability.
• Examine any contingent liabilities or off-balance-sheet commitments, especially related to property management or tenant obligations.
• Confirm the accuracy of current liabilities figures, as the main summary lists a large figure (£2.3 million) that appears only under long-term liabilities in the detailed accounts.
• Clarify the LLP’s business model and revenue streams given the absence of employees and limited operational disclosures.