Company Number: 13127483

Analysis Date: 2025-07-20 14:11 UTC

1. Risk Rating: MEDIUM

Justification: T. A. White Estates Ltd is an active private limited company operating in the property letting sector with investment properties valued at £351,028. The company shows a positive net asset position (£17,354 for 2025) and no overdue filings, indicating regulatory compliance. However, the company has significant current liabilities (£103,504 in 2025) and long-term bank loans (£247,652), with a negative net current asset position (-£86,022), which raises concerns over short-term liquidity and solvency risks.

2. Key Concerns:

• Negative Net Current Assets: Persistent negative working capital (-£86,022 in 2025) could indicate liquidity issues in meeting short-term obligations.
• High Leverage: Substantial bank loans (£247,652) compared to relatively low equity (£17,354) suggest high financial gearing, increasing solvency risk.
• Small Scale and Limited Equity Base: Minimal share capital (£1) and modest retained earnings may limit financial flexibility to absorb shocks or fund growth.

3. Positive Indicators:

• Investment Property Valuation Stable: Fixed assets (investment properties) held at £351,028 have remained stable over the last three years, indicating asset value retention.
• Regulatory Compliance: No overdue accounts or confirmation statements, demonstrating adherence to statutory filing requirements.
• Experienced Sole Director: The single director has been with the company since inception and maintains active control, potentially enabling swift decision-making.

4. Due Diligence Notes:

• Review the terms and repayment schedule of the bank loans (£247,652) to assess refinancing risk and cash flow pressure.
• Investigate the nature and timing of current liabilities (£103,504), including whether any are overdue or subject to enforcement action.
• Examine cash flow statements and forecasts (not provided) to verify liquidity management given negative net current assets.
• Confirm the valuation methodology for investment properties and any exposure to market or tenant risks.
• Assess the director’s financial support or guarantees related to company debts, considering the low equity base.
• Explore the company’s revenue streams and profitability, as turnover and profit information is not disclosed.