LOUGHVIEW TEMPLEPATRICK PROPERTIES LIMITED

Executive Summary

Loughview Templepatrick Properties Limited exhibits high financial leverage with minimal equity and substantial intra-group receivables and payables, raising significant solvency and liquidity concerns. While regulatory compliance and audit opinions are positive, investor caution is advised until further clarity is obtained on group dependency and debt servicing capacity.

LOUGHVIEW TEMPLEPATRICK PROPERTIES LIMITED - Analysis Report

Company Number: NI678722

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: HIGH

Justification: The company shows a minimal net asset value (£100) despite holding substantial tangible assets (£3.85M) and large current assets, which are heavily skewed towards debtors owed by group undertakings (£4.72M). Current liabilities and long-term borrowings are significantly high (£8.31M within one year and £8.31M after one year), indicating a very leveraged position and potential solvency risk due to concentrated intra-group debts and high creditor balances.

2. Key Concerns:

• Solvency Risk: Net assets equal to share capital (£100) with total liabilities exceeding £8M suggests the company is highly leveraged and may struggle to meet obligations without group support.
• Liquidity Concerns: Cash on hand is very low (£24,455), while debtors are almost entirely amounts owed by group undertakings, raising concerns about the collectability and liquidity of these receivables.
• Reliance on Group Transactions: Large debtor and creditor balances relate to group companies, possibly indicating operational dependence and risk of financial distress if group entities underperform.

3. Positive Indicators:

• Regular and timely filing of accounts and confirmation statements with no overdue filings, indicating regulatory compliance.
• Auditor’s report is unqualified, suggesting financial statements fairly present the company’s position.
• Tangible fixed assets remain stable and significant, providing some asset backing.

4. Due Diligence Notes:

• Investigate the nature and collectability of amounts owed by group undertakings (£4.72M) to assess credit risk and liquidity.
• Review terms and conditions of the bank loans (£8.31M) and intra-group borrowings to understand repayment schedules and covenants.
• Assess the financial health and operational viability of the wider group to evaluate the risk of contagion.
• Confirm whether the company benefits from any guarantees or support agreements within the group given the minimal equity base.
• Understand the business model and cash flow generation capabilities beyond intra-group transactions.