T & L PROPERTY MANAGEMENT LTD

Executive Summary

T & L Property Management Ltd currently faces high solvency and liquidity risks, evidenced by negative net assets and large working capital deficits. While it maintains a stable asset base and regulatory compliance, significant long-term debt and poor short-term liquidity warrant caution. Further investigation into debt terms, cash flows, and management plans is essential to assess the company’s operational sustainability.

T & L PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 13944078

Analysis Date: 2025-07-20 12:13 UTC

1. Risk Rating: HIGH
   T & L Property Management Ltd exhibits a high risk profile primarily due to its negative net assets position, substantial long-term liabilities relative to current assets, and ongoing working capital deficits. The company’s financials indicate solvency and liquidity challenges that could impair its ability to meet obligations without restructuring or additional funding.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has net liabilities of £3,848 as of 31 March 2024, worsening from £2,074 the prior year, indicating erosion of equity and potential insolvency risks.
• Significant Long-Term Debt: The company reports over £71k in creditors due after more than five years, with no corresponding increase in tangible fixed assets or improvement in liquidity, suggesting leverage that may be unsustainable.
• Severe Working Capital Deficit: Current liabilities (£37,554) exceed current assets (£4,824) by a large margin, resulting in net current liabilities of approximately £32,730, which raises immediate liquidity concerns and the ability to cover short-term obligations.

3. Positive Indicators:

• Asset Base Stability: Tangible fixed assets remain constant at £100,141, representing a material asset base that may support refinancing or sale to manage liabilities.
• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement filings, indicating adherence to regulatory requirements and governance standards.
• Stable Directorship and Control: The two directors, who are also significant controllers, have maintained consistent involvement since incorporation, which may support operational continuity.

4. Due Diligence Notes:

• Nature and Terms of Long-Term Debt: Clarify the conditions, repayment schedule, and security for the £71k non-instalment bank loan to assess refinancing risk or covenants.
• Cash Flow and Profitability Data: Obtain detailed income statements and cash flow statements to understand operating performance, revenue streams, and whether losses are ongoing or one-off.
• Business Model Viability: Understand the operational model given no employees are reported and whether the company is generating sustainable rental income or reliant on external funding.
• Directors’ Plans: Investigate any management strategies to address the capital deficiency and liquidity issues, including potential capital injections or asset disposals.
• Audit Exemption Rationale: Review whether the unaudited abridged accounts adequately disclose risks and if audit waiver is appropriate given the financial position.