THORPE PROPERTY GROUP LIMITED

Executive Summary

Thorpe Property Group Limited is a newly incorporated property letting company showing early signs of financial strain, primarily due to high leverage and negative working capital. The investment property asset base is a positive foundation, but the company currently faces solvency and liquidity risks that require careful monitoring. Further investigation into debt terms and cash flow generation is recommended to gauge operational viability.

THORPE PROPERTY GROUP LIMITED - Analysis Report

Company Number: 15169427

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities of £117,226 and overall net liabilities of £4,036. The substantial long-term borrowings relative to asset values and negative shareholders’ funds indicate elevated financial risk.

2. Key Concerns:

• Negative Net Current Assets: The current liabilities of £132,900 far exceed current assets of £15,674, suggesting potential cash flow difficulties in meeting short-term obligations.
• Overall Negative Equity: Shareholders’ funds stand at negative £4,136, which signals that the company’s liabilities surpass its assets, a red flag for solvency.
• High Borrowing Levels: Non-current liabilities (bank loans) of £252,194 secured against investment property indicate significant leverage, which may increase financial stress if rental income or property values decline.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £365,384, which provides a tangible, relatively stable asset base.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating regulatory compliance and good governance practices at this early stage.
• Single Director with Full Control: Clear ownership and control by one individual can facilitate swift decision-making.

4. Due Diligence Notes:

• Verify the terms, interest rates, and repayment schedules of the bank loans to assess refinancing risk and debt servicing capacity.
• Review rental income streams or other revenue generation from the investment property to evaluate operational cash flow sustainability.
• Investigate the company’s business plan regarding property acquisition, management, and any planned capital injections to address current negative equity.
• Confirm related party transactions or loans, given the director’s full control and significant borrowings.
• Assess the valuation methodology and market comparability of the investment property figure.