THREE PEAKS PROPERTIES LIMITED

Executive Summary

Three Peaks Properties Limited demonstrates active asset growth but remains financially leveraged with negative equity and limited liquidity. The company’s ability to service debts depends heavily on director support and refinancing. Conditional credit approval is recommended with rigorous ongoing monitoring of solvency and cash flow improvements.

THREE PEAKS PROPERTIES LIMITED - Analysis Report

Company Number: 13101029

Analysis Date: 2025-07-29 20:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Three Peaks Properties Limited shows signs of operational continuity with increasing fixed assets, indicating active investment in property. However, the company has persistent net liabilities and negative shareholders’ funds (£-25,947 as of 31/12/2024), reflecting accumulated losses. Current liabilities significantly exceed current assets, and long-term creditors have increased notably, which raises concerns about solvency and debt servicing capacity. The directors’ support and going concern statement are positives, but tight liquidity and negative equity warrant caution. Approval should be conditional on ongoing director support and monitoring financial improvements.

2. Financial Strength:
   The company’s fixed assets rose sharply from £311,721 in 2023 to £736,660 in 2024, implying recent property acquisitions or capital expenditure. However, net liabilities remain negative and have slightly worsened, with shareholders’ funds decreasing from £-25,299 to £-25,947. The long-term liabilities more than doubled, from £338,357 to £770,394, signaling increased borrowing or creditor reliance. The balance sheet is leveraged and undercapitalized, with equity deficits posing a risk to creditors.

3. Cash Flow Assessment:
   Current assets remain minimal (£7,787 in 2024), with current liabilities at £770,394, suggesting limited liquidity and working capital deficits if short-term obligations fall due. Although net current assets are positive, this figure is due to a small increase in current assets rather than a reduction in current liabilities. The company’s ability to meet near-term payments from operational cash flow appears constrained, relying heavily on director support and refinancing.

4. Monitoring Points:

• Track changes in net liabilities and shareholders’ funds for improvement or further deterioration.
• Monitor cash flow statements for operational cash generation and liquidity improvements.
• Review the composition and terms of long-term creditors to assess refinancing risk.
• Watch for timely repayment of current liabilities and adherence to filing deadlines.
• Maintain oversight of directors’ ongoing financial support and any changes in management.