TSI PROPERTY LLP

Executive Summary

TSI Property LLP has historically held strong fixed assets and equity, but recent accounts reveal a complete disposal of fixed and current assets, resulting in minimal liquidity. The company depends heavily on member loans for capital, which poses repayment risks if internal funding support diminishes. Credit approval is conditional upon evidence of liquidity management and ongoing financial support from members, with close monitoring of cash flow and capital structure advised.

TSI PROPERTY LLP - Analysis Report

Company Number: OC433962

Analysis Date: 2025-07-29 19:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   TSI Property LLP is an active limited liability partnership operating in the property sector. The firm has demonstrated significant investment in fixed assets historically but has recently disposed of these assets as of the latest financial year ending March 2024. The absence of fixed assets and current liabilities, along with no current assets reported in the latest year, raises concerns about ongoing operational liquidity. The loans and debts due to members remain substantial, indicating reliance on internal funding. Approval is recommended with conditions that the company provides satisfactory plans for maintaining liquidity and servicing member loans, along with regular monitoring of financial status.

2. Financial Strength:

• The LLP showed strong asset backing in prior years with fixed assets of £9.2M and net current assets of approximately £1.5M as of March 2023.
• In the latest year (March 2024), fixed assets and current assets have reduced to zero, and no current liabilities are recorded, implying possible asset sales or restructuring.
• Net assets attributable to members were £10.7M in 2023, corresponding to loans and debts due to members, indicating that the company’s equity is largely in the form of member loans rather than external financing.
• The reliance on member loans suggests limited external debt but also potential risk if members cannot continue to support the business.

3. Cash Flow Assessment:

• Cash balances reported are negligible (£1), with no debtors or current liabilities in the latest year, suggesting very limited working capital or liquid resources.
• Prior year debtors (£1.5M) have been fully written off or collected, but no replacement current assets are reported, which may imply reduced operational activity or asset liquidation.
• The absence of cash and current assets impacts the company’s ability to meet short-term obligations independently of member funding.
• The company’s liquidity position is weak and depends heavily on the continued willingness of members to provide financial support.

4. Monitoring Points:

• Monitor cash flow closely, ensuring that the company maintains sufficient liquidity to meet obligations without delay.
• Track any changes in member loans and capital contributions, as these are critical to the LLP’s capital structure and solvency.
• Review future filings for signs of recovery in current assets or re-investment in fixed assets to support business growth.
• Watch for any overdue filings or changes in director appointments which might signal governance or operational issues.
• Evaluate any business plans or forecasts provided by management to assess sustainability and repayment capacity.