TRI-TAURI PROPERTIES LTD

Executive Summary

Tri-Tauri Properties Ltd operates in real estate with a stable fixed asset base but faces moderate liquidity and solvency risks due to ongoing negative working capital and reliance on creditor financing. The company is compliant with filing requirements and shows slight equity improvement, yet careful monitoring of cash flows and creditor arrangements is essential. Further due diligence should focus on cash flow sustainability and creditor terms to assess operational stability.

TRI-TAURI PROPERTIES LTD - Analysis Report

Company Number: 12744588

Analysis Date: 2025-07-29 15:05 UTC

1. Risk Rating: MEDIUM

Justification: Tri-Tauri Properties Ltd shows signs of financial stress primarily due to persistent negative net current assets and high current liabilities relative to current assets, although there is some improvement in net assets in the latest year. The company holds fixed assets consistent over the past years but has limited working capital and a small equity base, which presents moderate solvency and liquidity risk. The absence of employees and micro-entity reporting indicate a very small operation with limited financial complexity.

2. Key Concerns:

• Consistent negative net current assets over the last four years, indicating liquidity constraints and potential difficulty meeting short-term obligations.
• Significant current liabilities (£65,675 in 2024) compared to small current assets (£9,323), creating a working capital deficit.
• Reliance on long-term creditors (£70,000 in 2024) which may represent debt that requires ongoing servicing and could pressure cash flows.

3. Positive Indicators:

• Small but positive net assets and shareholders’ funds as of 2024 (£423), showing slight improvement from previous negative equity.
• Stable fixed asset base (£127,585) which likely represents property holdings aligned with the company’s core real estate business.
• Up-to-date filing status with no overdue accounts or confirmation statements, demonstrating regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Detailed review of creditor terms and repayment schedules, especially the £70,000 long-term liabilities, to assess refinancing or repayment risks.
• Examination of cash flow statements (not provided) to verify operational cash generation and timing of cash inflows versus outflows.
• Inquire about business strategy and plans to improve working capital, including rent roll, occupancy levels, or sales of properties.
• Clarification on the cause of previous negative equity and the measures taken to restore positive net assets.
• Confirm no director disqualifications or governance issues given director appointments and resignations.