TEEPEE PROPERTIES LIMITED

Executive Summary

TeePee Properties Limited is currently in a financially weak position with negative equity and working capital deficits, reliant on shareholder support to continue as a going concern. The company's large secured bank loan against its investment property heightens risk, as internal cash flows appear insufficient to service debt and meet liabilities. Without substantial improvements in liquidity or capital structure, credit approval is not recommended at this time.

TEEPEE PROPERTIES LIMITED - Analysis Report

Company Number: 13145384

Analysis Date: 2025-07-20 16:26 UTC

1. Credit Opinion: DECLINE
   TeePee Properties Limited shows a persistently weak financial position with net liabilities and negative shareholders' funds for multiple years. Despite owning investment property valued at £412,340, the company has current liabilities greatly exceeding current assets, resulting in negative working capital of £117,236 as of 31 January 2024. The substantial bank loan of approximately £296,834 is secured against the property, but the company's ability to service this debt is questionable given the lack of cash flow and ongoing negative equity. The director's reliance on shareholder support for going concern indicates insufficient internal cash generation. Without evidence of improving cash flows or equity injection, the risk of default is elevated.

2. Financial Strength:
   The balance sheet is heavily leveraged with total liabilities exceeding total assets, resulting in net liabilities of £1,730 as of the latest accounts. Fixed assets consist solely of one investment property valued at £412,340, but current liabilities of £132,990 and long-term bank loans of £296,834 create a debt-heavy structure. Negative net current assets indicate liquidity stress. Shareholders' funds have improved from a negative £8,057 to negative £1,731, reflecting a profit for the year, but remain insufficient to cover liabilities. The company's financial strength is weak, with high gearing and poor equity buffer.

3. Cash Flow Assessment:
   Cash on hand improved to £14,154 from £4,520, but remains low relative to current liabilities of £132,990. Debtors are minimal at £1,600, indicating limited receivables. Negative net current assets highlight working capital deficiency and potential liquidity challenges in meeting short-term obligations. Absence of detailed income statement data prevents a full cash flow analysis, but disclosed reliance on shareholder funding for going concern indicates operating cash flows are inadequate to cover debt servicing and working capital needs.

4. Monitoring Points:

• Monitor quarterly cash flow and liquidity position closely to assess ability to meet short-term liabilities.
• Watch for any equity injections or shareholder loans that may improve the capital structure.
• Track rental income stability and any changes in investment property valuation that affect asset coverage.
• Review any changes in bank loan terms or refinancing arrangements, particularly regarding covenants and security.
• Observe director and shareholder support commitments to ensure ongoing funding capability.