KENT TEMPLAR MANAGEMENT 2 LIMITED

Executive Summary

Kent Templar Management 2 Limited is a newly formed holding company with negligible financial substance and no trading history. Its balance sheet shows only nominal net assets and a contingent liability exposing it to significant group borrowing risk. Without operational cash flow or demonstrated ability to service debt, credit approval is declined at this stage.

KENT TEMPLAR MANAGEMENT 2 LIMITED - Analysis Report

Company Number: 15161969

Analysis Date: 2025-07-20 17:36 UTC

1. Credit Opinion: DECLINE

Kent Templar Management 2 Limited is a newly incorporated holding company with minimal financial activity to date. Its balance sheet shows only £1 in net assets and current assets, consisting solely of a debtor balance from a group company. There is no turnover, no revenue, no cash, and no independent operational activity evident. The company also has a contingent liability related to a substantial secured borrowing by its related limited partnership, which it has guaranteed by way of a fixed and floating charge. This introduces potential risk exposure without any evident financial strength to support it. Given the lack of trading history, negligible financial resources, and contingent liabilities, the company does not currently demonstrate the ability to service debt or meet external credit obligations independently. Credit approval would be unwise without substantial additional support or guarantees.

2. Financial Strength: Weak

The company’s financial position is essentially a shell with only £1 in net assets, representing the nominal share capital. The balance sheet is immaterial with no fixed assets, no operating cash flow, and no earnings reserves. The debtor balance of £1 is related party intercompany and does not reflect third-party receivables or liquid assets. There is no evidence of profitability or earnings capacity. The contingent liability related to the LP's borrowing of over £3.5 million secured against the company’s assets is significant relative to the company’s financial footprint and presents a material financial risk.

3. Cash Flow Assessment: Insufficient

No cash or liquid assets are reported. The company’s only current asset is a nominal debtor balance owed by a group undertaking, which is not immediately realisable cash. The lack of cash or working capital severely limits the company’s ability to meet short-term liabilities or service any loan repayment commitments. The absence of income or trading cash flow is a critical weakness from a credit perspective.

4. Monitoring Points:

• Watch for future filed accounts to assess if operational trading or cash generation begins.
• Monitor any changes in contingent liabilities or related party transactions that may impact financial risk.
• Review any new borrowings or credit facilities and associated security arrangements.
• Track parent and group company financial health, as this company’s credit profile depends heavily on group support.
• Observe director appointments or changes that may indicate management strengthening or restructuring.