TSA PROPERTIES (EST 2021) LIMITED

Executive Summary

TSA Properties (Est 2021) Limited is currently in a weak financial position with negative equity and significant working capital deficits, raising concerns about its ability to meet credit obligations. The company relies heavily on related party funding and has limited liquidity, reducing its resilience to financial stress. Without improvement in cash flows and balance sheet strength, the company is unsuitable for new credit facilities at this time.

TSA PROPERTIES (EST 2021) LIMITED - Analysis Report

Company Number: 13265338

Analysis Date: 2025-07-20 18:05 UTC

1. Credit Opinion: DECLINE
   TSA Properties (Est 2021) Limited exhibits significant financial weakness. The company’s net liabilities have increased from £22k (2023) to £35k (2024), reflecting ongoing losses or negative retained earnings. Working capital is substantially negative (£134k deficit), indicating an inability to cover short-term liabilities with current assets. The large amount of long-term creditors (£259k) compared to net assets further stresses the balance sheet. The absence of an audit and limited disclosure on profitability restricts full assessment, but current data suggests inadequate capacity to service debt or new credit.

2. Financial Strength:
   The balance sheet shows tangible fixed assets of £358k (mostly leasehold property and plant and machinery), but these are heavily leveraged. Current liabilities of £147k significantly exceed current assets of £12.5k, yielding a net current liability position of £134k. Long-term liabilities more than doubled from £130k to £259k year-on-year, including secured bank loans of £189k. Shareholders’ funds are negative at £35k, indicating an equity deficit. The company is dependent on related party loans with no interest and repayment flexibility, which raises concerns about sustainability without these informal arrangements.

3. Cash Flow Assessment:
   Cash at hand is minimal (£2k), and trade debtors are relatively small (£10.5k). The company’s working capital deficit and sizeable creditor balances suggest liquidity stress. Reliance on related party funding (Temporary Staffing Agency TSA Limited owed £136k) with no interest and conditional drawdown limits external liquidity options. Negative net current assets and rising liabilities indicate cash flow from operations is likely insufficient to meet short-term obligations without additional financing or asset sales.

4. Monitoring Points:

• Monitor changes in net current liabilities and liquidity ratios (current ratio and quick ratio) to detect worsening short-term funding risk.
• Watch debtor collection periods and cash flow from operations for improvement or deterioration.
• Track changes in secured debt and related party loan balances, especially any movement from informal to formalized borrowing.
• Review future filed accounts for profitability trends and any equity injections or debt restructuring.
• Assess management’s plans for addressing working capital deficits and reducing creditor reliance.