TT RESIDENTIAL PROPERTY SERVICES LIMITED

Executive Summary

TT Residential Property Services Limited shows signs of significant financial stress with negative equity and large current liabilities outweighing cash resources. While the company is compliant with filings and has an expanding property asset base, its heavy reliance on secured debt and persistent losses elevate solvency and liquidity risks. Further investigation into asset valuations, cash flow, and debt servicing capacity is advisable before considering investment.

TT RESIDENTIAL PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 13000278

Analysis Date: 2025-07-20 18:35 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net assets and substantial net current liabilities. The high level of secured bank loans relative to asset values further exacerbates financial vulnerability.

2. Key Concerns:

• Negative shareholders’ funds: Net assets deteriorated from -£23,311 in 2021 to -£127,344 in 2024, indicating accumulated losses and potential insolvency risk.
• Large net current liabilities: Current liabilities exceed current assets by £685,038 as of 2024, signaling possible liquidity constraints and difficulty meeting short-term obligations.
• Heavy reliance on secured debt: Bank loans totaling approximately £497,161 (secured by investment property) increase financial leverage and risk exposure, especially if property valuations decline or rental income falters.

3. Positive Indicators:

• Increasing investment property asset base: The value of investment property grew from £663,261 in 2023 to £1,023,687 in 2024, suggesting active asset acquisition or revaluation.
• Consistent filing compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and governance discipline.
• Single director control with full shareholding: Ownership concentration under Mr. Timothy Lambkin may facilitate rapid decision-making and strategic alignment.

4. Due Diligence Notes:

• Verify the basis and independence of the investment property valuation, which is director-assessed and could be optimistic.
• Review rental income stability and occupancy rates for investment properties to assess operational cash flow sufficiency.
• Investigate the terms and repayment schedule of bank loans secured against the properties to understand refinancing risk and covenant compliance.
• Examine the underlying causes of accumulated losses and whether there is a viable business plan for returning to profitability.
• Confirm absence of director disqualifications or related party transactions beyond the marginal director’s account balance disclosed.