TEN 15 PROPERTY LTD

Executive Summary

TEN 15 PROPERTY LTD has shown balance sheet strengthening with increased property valuations and improved working capital. However, the company’s high secured debt level and lack of detailed profitability data require conditional credit approval with ongoing monitoring of cash flow sufficiency and property market risks. The management team appears stable and transparent in reporting, supporting prudent credit oversight.

TEN 15 PROPERTY LTD - Analysis Report

Company Number: SC682942

Analysis Date: 2025-07-29 20:19 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   TEN 15 PROPERTY LTD demonstrates an improving financial position with increased net assets and positive working capital in the latest year. The company’s principal activity in managing and owning residential real estate is supported by tangible investment property assets valued at fair market. However, the significant long-term borrowings secured against these properties pose refinancing and covenant risks, requiring ongoing close monitoring. Credit approval is recommended on condition of periodic review of loan servicing capability, property market conditions, and compliance with lender covenants.

2. Financial Strength:
   The balance sheet shows growth in net assets from £12,284 in 2023 to £25,871 in 2024, reflecting a fair value uplift of investment properties by £28,281 to £275,000. Fixed assets dominate the asset base, primarily investment properties, providing collateral for secured loans totaling £265,814. Current assets increased to £22,249, mainly cash, improving liquidity. Net current assets improved from a deficit of £65,616 in 2023 to a positive £20,019 in 2024, indicating better short-term financial health. Shareholders’ funds remain modest but have doubled, signaling retained earnings accumulation.

3. Cash Flow Assessment:
   Cash on hand increased significantly from £5,569 to £20,793, indicating improved cash generation or capital injections. Current liabilities dropped dramatically from £71,185 to £2,230, suggesting settlement or reclassification of short-term debt. However, the company carries substantial long-term debt secured by property assets, which may require regular interest and principal repayments. The company's ability to generate sufficient operating cash flows to meet these obligations should be verified, as the accounts do not include a profit and loss statement to confirm operating profitability.

4. Monitoring Points:

• Debt servicing ratios including interest coverage and loan-to-value on investment properties, given the high leverage.
• Property market valuation trends in Edinburgh residential sector affecting collateral value and refinancing options.
• Cash flow statements once available to confirm sustainable operating cash generation.
• Compliance with lender covenants and any restructuring discussions with Paragon Bank PLC and Lendinvest Btl Limited.
• Continued maintenance of positive working capital and timely payment of current liabilities.