QUATTRO PROPERTY PORTFOLIO LTD

Executive Summary

Quattro Property Portfolio Ltd exhibits moderate financial risk driven by significant short-term liabilities exceeding current assets, indicating liquidity challenges. However, asset growth in investment properties and improved net equity provide some financial stability. Continued monitoring of debt obligations and liquidity management is recommended to assess ongoing operational viability.

QUATTRO PROPERTY PORTFOLIO LTD - Analysis Report

Company Number: 13159559

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: MEDIUM
   The company shows a moderate risk profile. While it holds significant fixed assets (investment properties) that have increased in value, it carries substantial current liabilities exceeding current assets by a large margin, resulting in a negative net working capital position. The net assets have improved but remain relatively low compared to liabilities. These factors indicate potential liquidity pressures despite some asset backing.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities of £401,886 (2024) far exceed its current assets of £8,346, indicating tight liquidity and potential difficulty meeting short-term obligations without refinancing or asset sales.
• Heavy Reliance on Bank Loans: Long-term liabilities increased to £401,886 from £275,354 in the prior year, highlighting growing debt levels which may constrain financial flexibility and increase solvency risk.
• Director’s Loan Exposure: A director’s loan account of £107,087 forms a significant portion of current liabilities, potentially indicating reliance on insider funding rather than external stable financing sources.

3. Positive Indicators:

• Increasing Investment Property Value: Fixed assets (investment properties) rose significantly from £388,192 (2023) to £575,729 (2024), suggesting asset appreciation or portfolio expansion, which strengthens the balance sheet over the longer term.
• Improved Net Assets and Shareholders’ Funds: Net assets improved markedly to £31,641 from £3,902 due to increased property values and retained earnings, reflecting positive equity growth.
• No Overdue Filings and Active Status: The company is active with no overdue accounts or confirmation statements, indicating compliance with statutory filing obligations and good governance on this front.

4. Due Diligence Notes:

• Investigate the terms, covenants, and repayment schedule of the substantial bank loans to assess refinancing risk and debt servicing capacity.
• Review cash flow forecasts and liquidity management to determine how the company plans to manage negative working capital and meet immediate obligations.
• Examine the nature and conditions of the director’s loan account to understand the security, repayment terms, and implications for financial stability.
• Validate the valuation method and market assumptions supporting the investment property fair values to confirm asset quality and realizable worth.
• Confirm absence of related-party transactions beyond the director’s loan that may impact financial position or governance.