TRAN PROPERTY WORCESTER LTD

Executive Summary

Tran Property Worcester Ltd demonstrates a high-risk financial profile characterized by significant liabilities and low net equity, raising concerns about its solvency and liquidity. While compliance with statutory filings is up to date and the company holds substantial fixed assets, the imbalance between assets and liabilities suggests potential financial vulnerability that warrants further investigation. Investors should conduct detailed due diligence on debt structure and cash flow before engagement.

TRAN PROPERTY WORCESTER LTD - Analysis Report

Company Number: 12527550

Analysis Date: 2025-07-29 18:13 UTC

1. Risk Rating: HIGH
   The company shows significant solvency risk due to high current liabilities far exceeding current assets, resulting in negative net current assets. The net assets are very low relative to fixed assets, indicating heavy indebtedness and potential financial distress.

2. Key Concerns:

• Current liabilities (£608,371) greatly exceed current assets (£28,246), causing negative working capital and liquidity strain.
• Net assets are nominal (£15,484), suggesting minimal equity buffer against debts.
• Consistently high long-term liabilities with fixed assets unchanged at £600,000 may imply leveraged property holdings with limited liquidity.

3. Positive Indicators:

• The company remains active and compliant with filing requirements, with no overdue accounts or confirmation statements.
• Fixed assets value has been stable over recent years, indicating some tangible asset base.
• Directors appear to be maintaining statutory responsibilities as per accounts statements.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£608k+), including repayment schedules and any covenants.
• Review cash flow trends and operational income to assess ability to service liabilities.
• Assess the valuation and liquidity of fixed assets to understand realisable value in case of distress.
• Examine reasons for low net equity and potential reliance on related party or shareholder loans.
• Confirm absence of director disqualifications or regulatory issues beyond publicly available data.