TADA PROPERTIES LTD

Executive Summary

TADA Properties Ltd shows improved short-term liquidity but a concerning shift to negative net assets due to significant long-term liabilities and disappearance of fixed assets. While regulatory compliance is current, the company's solvency profile has weakened, warranting closer examination of asset changes and debt structure. Investors should undertake further due diligence particularly on asset valuation and long-term financial commitments.

TADA PROPERTIES LTD - Analysis Report

Company Number: 13451864

Analysis Date: 2025-07-29 17:37 UTC

1. Risk Rating: MEDIUM
   The company shows a recent deterioration in net assets from positive £10,178 (FY 2023) to negative £16,366 (FY 2024), indicating a weakening balance sheet. While current assets exceed current liabilities in 2024, the overall net liabilities and negative shareholders' funds present a solvency concern. The company is small and relatively new, which warrants caution.

2. Key Concerns:

• Solvency deterioration: The net asset position turned negative in the latest financial year due to increased long-term liabilities, reducing shareholder equity.
• High long-term liabilities: Creditors due after more than one year have decreased but remain significant relative to assets (£110k), potentially indicating reliance on debt financing.
• Fixed assets impairment/write-down: Fixed assets dropped from £365k in 2023 to nil in 2024, which raises questions about asset disposals or impairments not explicitly explained in the filings. This could impact collateral value and operational capacity.

3. Positive Indicators:

• Improved liquidity: Current assets increased substantially in 2024 to £110k against current liabilities of £1,905, yielding strong positive net current assets of £108k, which suggests good short-term liquidity.
• No overdue filings: The company is up to date with both accounts and confirmation statement filings, reflecting good compliance discipline.
• Director stability and control: The sole director holds significant control and appears actively engaged, with no adverse records noted.

4. Due Diligence Notes:

• Investigate the reason behind the disappearance of fixed assets in the latest year—whether through sale, impairment, or reclassification—and its impact on company operations.
• Review details on long-term liabilities and creditor agreements to understand repayment terms and financial commitments.
• Assess cash flow statements (not provided) to confirm liquidity position and sustainability of operations.
• Clarify the nature and terms of director loans and their full repayment timing, given the £6,827 interest-free loans repaid in early 2025.