TALLEY PROPERTY HOLDINGS LTD

Executive Summary

Talley Property Holdings Ltd demonstrates a solid net asset position with no regulatory compliance issues, but the concentration of assets in non-interest bearing related party loans and a large increase in short-term creditors introduce liquidity uncertainties. The absence of profit and loss disclosures limits transparency on operational performance, warranting further investigation into cash flows and related party transactions to fully assess financial stability.

TALLEY PROPERTY HOLDINGS LTD - Analysis Report

Company Number: 13061154

Analysis Date: 2025-07-20 13:19 UTC

1. Risk Rating: MEDIUM

Justification: Talley Property Holdings Ltd shows a strong net asset position and positive net current assets, indicating solvency. However, the significant increase in short-term creditors and a notable portion of its assets tied up in related party receivables without repayment terms or interest raises liquidity and operational risk concerns.

2. Key Concerns:

• Liquidity Risk: Cash at bank decreased by approximately 34% year over year (£2.00m to £1.32m), while short-term creditors surged from £28.9k to £241.6k, potentially stressing near-term cash flow.
• Concentration of Assets in Related Party Loans: Over £2.16 million of current assets are loans to related parties with no formal repayment terms or interest, which may impair liquidity and recovery prospects.
• Limited Revenue Transparency: The company has opted not to file the profit and loss account, limiting insight into operational profitability and cash generation, thereby increasing uncertainty about business sustainability.

3. Positive Indicators:

• Strong Net Asset Base: Net assets remain robust at £3.5 million, with net current assets of £3.48 million, supporting solvency.
• Clean Compliance Record: No overdue filings; accounts and confirmation statements are up to date, indicating good regulatory compliance.
• Experienced Directors and Clear Ownership: Directors have been in place since incorporation; the majority shareholder is a related holding company with full control, suggesting stable governance structure.

4. Due Diligence Notes:

• Review detailed cash flow statements and any management accounts to understand operating cash generation and working capital management.
• Investigate the nature and collectability of related party loans, including any informal agreements or guarantees.
• Clarify the business model and revenue streams given the absence of profit and loss disclosures to assess operational sustainability.
• Confirm if the increase in short-term creditors is temporary or a trend, and understand the composition of the large other creditors balance.
• Assess any contingent liabilities or off-balance-sheet risks not disclosed in the accounts.