Company Number: 12906636

Analysis Date: 2025-07-20 14:29 UTC

1. Credit Opinion: DECLINE
   TAKE TWO TRAVEL SOLUTIONS LIMITED exhibits significant financial distress, with persistent large net losses resulting in negative shareholders' funds of £1.14m as of September 2023. The company has a substantial working capital deficit of £1.2m driven by current liabilities of £2.0m exceeding current assets of £0.8m. The heavy reliance on related party loans and shareholder capital injections to sustain operations raises concerns about its ability to service external debt or new credit facilities. The absence of an audit and the large accumulated losses further detract from creditworthiness. Without a clear path to profitability and improvement in liquidity, extending credit would carry high risk.

2. Financial Strength:
   The balance sheet shows increasing fixed assets (£59k) primarily software and tangible assets, but these are small relative to liabilities. Current liabilities increased sharply from £226k to £2.0m within one year, largely due to other creditors and related party borrowings. Net assets are negative and deteriorated by £305k year-on-year despite a £1.5m capital injection, indicating ongoing operating losses. The heavy reliance on related party funding (over £2m owed to connected companies and a director) highlights weak independent financial strength and vulnerability.

3. Cash Flow Assessment:
   Cash on hand improved to £140k but remains insufficient against near-term liabilities of over £2m. The negative net current assets of £1.2m confirm a liquidity shortfall, indicating the company may struggle to meet current obligations without continued shareholder support. The significant debtor balance (£666k) with a large portion as prepayments/accrued income suggests possible delays in cash conversion. Overall, liquidity is constrained and working capital management appears weak.

4. Monitoring Points:

• Profitability trend and reduction of accumulated losses
• Working capital improvements, especially reduction in current liabilities
• Reliance on related party funding and shareholder injections
• Cash conversion cycle and debtor ageing profile
• Management actions to stabilize operations and improve cash flow
• Any changes in director or shareholder support arrangements