PHILIP TIMOTHY LTD

Executive Summary

PHILIP TIMOTHY LTD shows signs of financial stress with negative net assets and working capital, raising solvency concerns. While regulatory compliance is maintained and the company remains active, the minimal capital base and limited financial disclosures warrant cautious scrutiny. Further investigation into cash flow, operational viability, and management plans is recommended before any investment consideration.

PHILIP TIMOTHY LTD - Analysis Report

Company Number: 13110031

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current assets as of the latest financial year, indicating insolvency risks. The liabilities exceed assets by a significant margin, suggesting potential difficulties in meeting obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital: The 2024 accounts show net assets of -£3,207 and net current assets of -£3,207, a deterioration from previous years, indicating solvency issues.
• Minimal Share Capital: Share capital stands at £1.00, which is minimal and may limit financial resilience.
• Limited Financial Disclosure and Scale: As a micro-entity with minimal financial data and only one employee (the director), operational sustainability and scalability are unclear.

3. Positive Indicators:

• Compliance With Filing Requirements: The company is up to date with both accounts and confirmation statement filings, showing regulatory compliance to date.
• Active Trading Status: The company is active and not in liquidation or administration, implying ongoing operations.
• Focused Business Model: Operating as an agent in textile and clothing sales with a clear online presence and stated advocacy mission may provide niche market differentiation.

4. Due Diligence Notes:

• Examine Cash Flow and Receivables: Investigate the nature of current liabilities and whether they are short term payables or accrued expenses, and assess cash flow projections.
• Review Director’s Plans for Addressing Negative Equity: Understand management’s strategy to improve the balance sheet and operational profitability.
• Assess Revenue Streams and Customer Base: Given limited financial data, verify actual trading activity, client contracts, and revenue growth prospects.
• Confirm No Undisclosed Liabilities: Given negative net assets, ensure all contingent liabilities or off-balance sheet obligations are identified.