TADMORE TUTORS TUITION LTD

Executive Summary

Tadmore Tutors Tuition Ltd exhibits weak financial health with negative equity and working capital deficits despite a modest profit in the latest year. The company relies heavily on director funding to meet liabilities and lacks sufficient liquidity to cover short-term obligations. Given these factors and its short operating history, credit exposure is high risk and not recommended for approval without significant improvement or guarantees.

TADMORE TUTORS TUITION LTD - Analysis Report

Company Number: 14009820

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion: DECLINE
   Tadmore Tutors Tuition Ltd shows persistent negative net current assets and shareholders' funds, indicating ongoing capital deficiency. Despite a modest profit in the latest year (£764), the company remains significantly undercapitalized with a net liability position (£6,326 deficit in reserves). Current liabilities (£11,474) exceed current assets (£4,806) by a wide margin, and the main creditor appears to be a director's loan account (£10,600), which may not be readily repayable. The company has only been trading since 2022, showing limited operational track record and weak financial resilience. This raises concerns about its ability to service external debt or meet commercial payment obligations without additional capital support.

2. Financial Strength:
   The balance sheet is weak with tangible fixed assets of only £442 and net current liabilities of £6,668 at the latest year end. The company is reliant on director funding to cover liabilities, as evidenced by large amounts owed to directors. Shareholders’ funds remain negative and have only marginally improved from the previous year. There is no evidence of significant asset base or equity cushion to absorb losses or support borrowing. The micro-sized company’s small scale and negative equity limit its financial strength and borrowing capacity.

3. Cash Flow Assessment:
   Cash at bank improved to £4,571 from £2,759 in the prior year, indicating some increase in liquidity; however, this is still insufficient to cover short-term liabilities of £11,474. The company’s working capital deficit (-£6,668) suggests ongoing cash flow pressure. Debtors are minimal (£235) and unlikely to provide meaningful short-term relief. The company’s current cash position and working capital are inadequate to support expansion or absorb shocks without additional funding.

4. Monitoring Points:

• Continued reliance on director loans and related party funding
• Improvement in net current assets and shareholders’ funds toward positive territory
• Timely settlement of current liabilities and avoidance of overdue payables
• Growth in operating cash flows to support liquidity and reduce dependence on external funding
• Any material changes in turnover or profitability trends once available