CLYDE PROPERTY LIMITED

Risk Rating: LOW
The company demonstrates strong solvency with positive net assets, consistent profitability over the last decade, and a comfortable liquidity position. No filing defaults or regulatory breaches are evident. The primary risk factor is the composition of large “other receivables,” which requires further investigation but does not currently threaten stability.

Key Concerns
1. High Other Receivables (£1.79m): This balance accounts for 91% of total trade and other receivables and 37% of total assets. Without disclosure of the nature (e.g., loans to group companies, deposits, or prepayments), there is uncertainty over recoverability and liquidity.
2. Declining Employee Base: Headcount fell from 162 to 156 year-on-year. In a real estate agency, staff are key revenue drivers; a sustained reduction could indicate margin pressure or operational restructuring.
3. Recent Board Changes: Two long-serving directors (Xxxxxx Xxxxxxxxname shown to subscribers and Xxxxxx Xxxxxxxxname shown to subscribers) resigned on 30 June 2026, and the secretary resigned in April 2026. While not unusual post-acquisition, the timing warrants confirmation of leadership stability.

Positive Indicators
- Strong Balance Sheet: Net assets of £3.43m and a current ratio of 2.5x (current assets / current liabilities) indicate ample working capital.
- Low Debt: Bank loans were fully repaid by September 2025, and no non-current liabilities remain. Finance leases are minimal.
- Consistent Profitability: Retained earnings have grown from £1.30m (2014) to £3.38m (2025), implying sustained positive results.
- No Filing Issues: Accounts and confirmation statements are up to date, and the audit report was unqualified.

Due Diligence Notes
- Request a breakdown of “other receivables” – confirm if these are intercompany loans, rent deposits, or other items; assess ageing and recoverability.
- Investigate the relationship with PSC Lomond Property Lettings Limited (75%+ owner) – verify whether intra-group transactions are at arm’s length and whether the company has become part of a larger group that could affect dividend policy or strategic direction.
- Clarify the rationale for the recent director resignations and whether they signal a broader management restructure or integration into the Lomond group.
- Obtain the profit and loss account (not filed under small company exemptions) to assess revenue trends, gross margins, and operating costs – this is essential for evaluating operational stability beyond the balance sheet.
- Review the client monies account balance (£354k) and ensure compliance with client money regulations (the corresponding liability confirms proper segregation).

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