TERRA FIRMA PROJECT MANAGEMENT LIMITED

Executive Summary

Terra Firma Project Management Limited exhibits significant solvency and liquidity risks, with increasing net liabilities and creditor balances exceeding current assets. While statutory compliance is maintained and current assets have grown, the absence of detailed financial disclosures and persistent negative equity present substantial concerns regarding operational sustainability. Further due diligence focusing on creditor terms and operational cash flow is recommended before considering investment.

TERRA FIRMA PROJECT MANAGEMENT LIMITED - Analysis Report

Company Number: 13549545

Analysis Date: 2025-07-29 19:24 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities with negative shareholders’ funds worsening over recent years. Current liabilities exceed current assets significantly when considering all creditor classifications, indicating solvency and liquidity concerns. The micro-entity status limits the detail and scope of financial disclosures, restricting transparency.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: Net liabilities increased from approximately £4,770 in 2023 to £8,741 in 2024, signaling ongoing financial distress.
• Long-term Creditors Exceed Current Assets: Creditors due after more than one year increased substantially from £13,209 to £35,022, far exceeding current assets (£26,963), raising questions about the company’s ability to meet long-term obligations.
• Limited Financial Disclosure and No Profit & Loss Account: As a micro-entity, the company has minimal reporting requirements and has elected not to file profit and loss details, which restricts insight into operational performance and cash flows.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements.
• Growth in Current Assets: Current assets have nearly tripled from £9,139 in 2023 to £26,963 in 2024, which could reflect improved liquidity or asset base.
• Stable Management Team: Multiple directors with relevant estate agency and lettings backgrounds suggest operational experience in the real estate sector.

4. Due Diligence Notes:

• Examine Nature and Terms of Long-term Creditors: Detailed investigation into the £35,022 creditors after one year to assess repayment schedules, interest, and potential risks.
• Request Management Accounts or Cash Flow Statements: To better understand operational cash generation, working capital management, and the cause of recurring net liabilities.
• Review Directors’ and Auditors’ Reports (if available): Although exempt from audit, any internal or external reviews might highlight financial or operational issues.
• Assess Business Model Viability: Given the negative equity and limited financial details, evaluate the sustainability of the company’s project management activities within the real estate sector.
• Verify No Director Disqualifications or Legal Issues: Confirm that no governance or regulatory compliance issues exist related to the directors.