Company Number: OC439003

Analysis Date: 2025-07-29 13:22 UTC

1. Risk Rating: MEDIUM

The company TIMART LLP shows a strong asset base primarily in investment properties, with net assets reported at approximately £9.68 million as of March 2024. However, the low level of members' capital (£2,000) and the classification of large amounts due to members as debts indicate a reliance on internal funding that ranks equally with unsecured creditors, which could pose a risk in liquidation scenarios. The current liabilities have increased significantly compared to prior years and are now recognized as trade creditors of £96,497, which requires monitoring. The absence of an audit and limited disclosure on operational income beyond rental turnover limit full transparency.

2. Key Concerns:

• Reliance on Members' Loans: The large balance of loans and other debts due to members (£9.68 million) that rank equally with unsecured creditors could challenge creditor recoveries and affect solvency if members withdraw support.
• Low Equity Capital: Members' capital remains minimal (£2,000), which does not provide a strong equity buffer relative to liabilities and could indicate limited financial resilience.
• Limited Operational Transparency: The financial statements exclude the profit and loss account, and no employees are reported, suggesting the LLP may be a property holding vehicle with limited operational activity, which may impact sustainable cash flows.

3. Positive Indicators:

• Strong Asset Base: Investment property valuations have increased to £9.78 million, reflecting capital appreciation and offering collateral value.
• Current Liabilities Covered by Cash: Despite increased trade creditors, cash balances (£139,623) exceed current liabilities (£96,497) at the latest year end, indicating short-term liquidity is presently adequate.
• Timely Filings: No overdue accounts or confirmation statements, demonstrating compliance with regulatory filing requirements.

4. Due Diligence Notes:

• Verify the nature and terms of the loans due to members, including repayment schedules, interest terms, and any security arrangements.
• Investigate the rental income streams and occupancy rates underpinning the investment property valuations to assess ongoing operational cash flows.
• Confirm the absence of contingent liabilities or off-balance-sheet obligations not disclosed in the accounts.
• Review any related party transactions given the significant loans from members and minimal external capital.
• Assess the governance structure and controls given the LLP format and limited operational staff.