Company Number: OC432457

Analysis Date: 2025-07-20 18:37 UTC

1. Risk Rating: MEDIUM

Justification: Fane Property Management LLP shows a substantial asset base primarily in investment property (£2.365m) and tangible assets, with positive net current assets (£498k) and total net assets of approximately £1.33m. However, the company carries significant long-term liabilities, including bank loans over five years (£1.52m) and member loans (£857k), which could impact solvency if cash flows are constrained. The low cash on hand (£14.5k) relative to current liabilities suggests potential liquidity concerns. The absence of turnover data for the latest period and the reliance on member loans further warrant cautious assessment.

2. Key Concerns:

• Liquidity Risk: Cash reserves are low (£14.5k) compared to current liabilities (~£257k), which may strain short-term obligations despite positive net current assets.
• High Leverage: Long-term bank loans (£1.52m) and significant unsecured member loans (£857k) represent substantial debt, increasing financial risk.
• Limited Revenue Information: Recent turnover figures are either low or not reported, making it difficult to assess operational cash generation and sustainability.

3. Positive Indicators:

• Strong Asset Base: Investment property and tangible assets total over £2.4m, providing collateral and a stable asset foundation.
• Positive Net Current Assets: Current assets exceed current liabilities by nearly £500k, indicating working capital adequacy.
• Up-to-Date Filings: Accounts and confirmation statements are filed on time with no overdue reports, reflecting compliance with statutory requirements.

4. Due Diligence Notes:

• Review the full income statement and cash flow statements to assess operational profitability and cash generation, especially for the most recent periods.
• Investigate the terms and covenants of bank loans and member loans to understand repayment schedules and priority in insolvency.
• Confirm the valuation basis and marketability of the investment property, including the fixed charge held by Aldermore Bank PLC.
• Assess the company’s business model sustainability given low turnover and no employees, including reliance on external property management or subcontracting.
• Verify the standing and background of designated members and the corporate member for any governance or conduct risks.