TRB PROPERTIES LIMITED

Executive Summary

TRB Properties Limited shows signs of financial strain, with negative net current assets driven by substantial directors’ loans and declining investment property values leading to negative net asset position. Although regulatory filings are current and governance appears sound, the company’s liquidity and solvency risks warrant close scrutiny, particularly regarding related-party funding sustainability and asset valuations. Further due diligence into cash flows and loan terms is recommended before considering investment.

TRB PROPERTIES LIMITED - Analysis Report

Company Number: 13120557

Analysis Date: 2025-07-20 11:36 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a persistent negative net current asset position with increasing current liabilities predominantly consisting of directors' loans. The net liabilities position as of 31 January 2024 and the decline in investment property valuation indicate solvency and liquidity pressures.

2. Key Concerns:

• Negative Working Capital: The company’s net current liabilities worsened from -£333k in 2023 to -£323k in 2024, indicating ongoing liquidity challenges.
• Directors’ Loans as Major Liability: Nearly all current liabilities (~£349k) are directors’ loans, suggesting reliance on related-party funding which may not be sustainable or readily convertible to cash.
• Declining Asset Valuation and Net Assets: Investment properties were revalued downwards by ~£20k (from £335k to £315k), contributing to a shift from positive net assets in 2023 (+£1.5k) to negative net assets (-£8.4k) in 2024, raising concerns about solvency.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating regulatory compliance and good governance in filing requirements.
• Stable Director Structure: Directors have been consistent since incorporation with no records of disqualification or governance issues.
• Small Share Capital and Controlled Ownership: The company has a modest share capital (£70) and clear ownership/control structure, which simplifies oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of directors’ loans to assess repayment capacity and risk of calls on these funds.
• Review cash flow statements and projections beyond balance sheet snapshots to evaluate operational cash generation and liquidity management.
• Examine reasons for the downward revaluation of investment properties and whether further impairments are expected.
• Confirm whether the company’s business model and income streams are sufficient to cover liabilities and ongoing expenses.
• Assess any contingent liabilities or off-balance sheet risks not disclosed in the accounts.