A TRIBE CALLED PT LTD

Executive Summary

A Tribe Called PT Ltd has demonstrated a positive turnaround in net assets, moving from negative equity in 2023 to positive in 2024. However, the company continues to face short-term liquidity constraints with negative working capital. Conditional credit approval is recommended, subject to ongoing monitoring of cash flow and financial performance to ensure operational resilience.

A TRIBE CALLED PT LTD - Analysis Report

Company Number: 12835790

Analysis Date: 2025-07-19 12:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   A Tribe Called PT Ltd is a micro-entity operating in sports and recreation education, currently active with no overdue filings. The company has shown a significant improvement in net assets from negative equity in 2023 (£-956) to positive equity in 2024 (£6,623), indicating a turnaround. However, the company still reports negative net current assets (£-7,404) which suggests short-term liquidity challenges. Given the small scale, limited employee base (average 1), and recent director change, credit approval is conditional upon monitoring cash flow closely and obtaining updated financials to confirm sustained improvement.

2. Financial Strength:
   The balance sheet shows fixed assets reduced from £18,703 to £14,027 year-on-year, possibly due to depreciation or disposals. Shareholders' funds improved substantially from negative £956 to positive £6,623, indicating recapitalization or retention of earnings. However, the company carries current liabilities (£18,267) exceeding current assets (£10,863), resulting in negative working capital. This weak liquidity position means the company is relying on longer-term financing or owner support to meet short-term obligations.

3. Cash Flow Assessment:
   Cash figures are not explicitly shown for 2024, but prior year cash was £5,706. Current assets of £10,863 likely include cash and short-term receivables, but the negative net current assets point to potential cash flow pressure. The company’s ability to manage payables and receivables efficiently is critical. Given the micro-entity size and single employee, cash flow volatility may be high. Close monitoring of cash receipts, debtor collections, and creditor payments is recommended.

4. Monitoring Points:

• Quarterly or bi-annual cash flow and working capital reports to ensure liquidity improvement.
• Directors’ management actions on reducing current liabilities or increasing current assets.
• Impact of director change in mid-2024 on operational and financial management.
• Profitability trends in subsequent filings to assess sustainability of equity gains.
• Any significant changes in client base or contract terms given the sports education sector.