TREGENNA PROPERTIES - DEVELOPMENTS (SPV) 11 LTD

Executive Summary

TREGENNA PROPERTIES - DEVELOPMENTS (SPV) 11 LTD is active but exhibits financial stress marked by negative net assets and a working capital deficit. This is typical for a property development SPV in early stages but requires careful liquidity management and potential capital support to stabilize financial health. Immediate attention to cash flow and creditor management is essential to avoid escalation into insolvency risk.

TREGENNA PROPERTIES - DEVELOPMENTS (SPV) 11 LTD - Analysis Report

Company Number: 13889456

Analysis Date: 2025-07-20 18:27 UTC

Financial Health Assessment for TREGENNA PROPERTIES - DEVELOPMENTS (SPV) 11 LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress based on its latest micro-entity accounts. While it is active and compliant with filing deadlines, the balance sheet reveals net current liabilities and negative net assets, indicating a fragile financial state. Given these factors, a grade of D reflects a weak but not yet critical position.

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2. Key Vital Signs:

Metric	2025 Value	Interpretation
Current Assets	£702,255	Healthy cash and receivables pool, significant growth from prior years
Current Liabilities	£718,108	High short-term debts, slightly exceeding current assets
Net Current Assets	-£15,853	Working capital deficit; potential liquidity pressure
Total Net Assets	-£15,853	Negative net worth; liabilities exceed assets
Shareholders’ Funds	-£15,853	Equity is in negative territory, indicating potential losses
Average Employees	0	No employees, possibly indicating minimal operating activity

Interpretation:

• Liquidity (Current Assets vs. Current Liabilities): The company’s current liabilities slightly exceed its current assets, resulting in a negative working capital position. This "symptom" suggests the company may struggle to meet short-term obligations without additional financing or asset sales.
• Solvency (Net Assets and Shareholders’ Funds): Negative net assets reflect that total liabilities are higher than total assets, a "symptom of distress" indicating the company’s net worth is below zero. This could be due to accumulating losses or significant short-term liabilities.
• Activity: The absence of employees indicates either a shell or holding entity structure or a company in early development stages without operational activity.
• Growth: The sharp increase in current assets and liabilities from previous years shows rapid financial activity, possibly linked to project development or financing arrangements.

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3. Diagnosis:

TREGENNA PROPERTIES - DEVELOPMENTS (SPV) 11 LTD is currently in a precarious financial condition. Its "vital signs" reveal a working capital deficit and negative net assets, which are classic "symptoms of distress" in business health. The company’s financial structure suggests it may be relying heavily on short-term financing or credit to fund its operations, common in property development SPVs during project ramp-up phases.

The absence of employees and the nature of the company as a Special Purpose Vehicle (SPV) for property development reflect a typical setup for specific project financing rather than ongoing trading. However, the negative equity position signals that the company must carefully manage cash flow and creditor relationships to avoid insolvency risks.

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4. Recommendations:

• Strengthen Liquidity Management:
  Investigate options to improve working capital, such as negotiating longer payment terms with creditors or accelerating receivables collection if applicable. Maintaining a "healthy cash flow" is critical to avoid liquidity crises.

• Capital Injection or Restructuring:
  Consider equity infusion from the parent company (Tregenna Ventures Ltd) or external investors to restore positive net assets and improve solvency metrics.

• Monitor Project Cash Flows Closely:
  As a property development SPV, cash flows may be irregular. Rigorous project and cash flow forecasting can help identify funding gaps early and avoid "symptoms" like overdrafts or missed payments.

• Maintain Compliance and Transparency:
  Continue timely filings and ensure clear communication with stakeholders about financial status and project progress to maintain confidence.

• Plan for Contingencies:
  Develop a contingency plan in case project delays or cost overruns further strain finances.

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