FANE PROPERTY MANAGEMENT LLP

Executive Summary

Fane Property Management LLP maintains a robust asset portfolio dominated by investment property but shows moderate liquidity and high leverage risks due to substantial long-term and member loans. Operational revenue appears limited or unreported recently, raising questions on cash flow sufficiency. The company complies with filing requirements, but further financial and operational due diligence is recommended to fully evaluate solvency and business sustainability.

FANE PROPERTY MANAGEMENT LLP - Analysis Report

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.