TRIANGLE MEWS 7 LIMITED

Executive Summary

Triangle Mews 7 Limited shows significant liquidity and solvency risks arising from current liabilities far exceeding current assets and a substantial long-term bank loan relative to modest equity. While the company holds valuable property assets and maintains good filing discipline, its minimal capital base and negative working capital position warrant caution. Further scrutiny of debt terms, director loans, and cash flow projections is essential to assess ongoing operational viability.

TRIANGLE MEWS 7 LIMITED - Analysis Report

Company Number: 13242707

Analysis Date: 2025-07-20 16:57 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to significant liquidity concerns, a precarious net asset position, and an ongoing large creditor obligation relative to current assets.

2. Key Concerns:

• Negative Net Current Assets: The company has current liabilities (£258K short-term creditors plus director’s loan) far exceeding current assets (£22K cash), yielding a net current liability of approximately £236K, indicating potential short-term liquidity stress.
• Large Outstanding Long-term Debt: A bank loan of £359,725 remains outstanding after more than one year, representing a substantial financial burden relative to the company’s equity of only £4,389.
• Minimal Share Capital and Equity Cushion: The company’s share capital is nominal (£2), and shareholders’ funds are marginally positive but volatile, turning from negative in prior years to barely positive, suggesting limited capital buffer for operational or financial shocks.

3. Positive Indicators:

• Stable Fixed Asset Base: The company holds tangible fixed assets (land and property) valued at £600,000 consistently over recent years, which may represent underlying security for creditors or a potential source of liquidity if sold.
• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance practices.
• Experienced Directors with Investor Backgrounds: Both current directors have investor occupations which may imply access to additional funding or financial acumen.

4. Due Diligence Notes:

• Investigate the terms and repayment schedule of the bank loan to assess refinancing risk and covenant compliance.
• Review director’s loan account details to understand the nature and repayment expectations of these intra-group or related party liabilities.
• Assess cash flow forecasts and operational income generation potential to evaluate if the company can meet short-term obligations without asset disposals.
• Verify the market value and liquidity of the fixed asset (property) held to determine if it can be monetized if needed.
• Confirm no contingent liabilities or undisclosed obligations exist that could further impair financial stability.