TADWORTH COMMERCIAL SERVICES LIMITED

Executive Summary

Tadworth Commercial Services Limited shows a weakening financial position with net assets halving in the latest year, though liquidity remains positive. The company is small, with limited capital and modest operations, managed by a controlling director with relevant experience. Credit approval is possible but should be conditional, requiring ongoing monitoring of financial metrics and cash flow to mitigate risk.

TADWORTH COMMERCIAL SERVICES LIMITED - Analysis Report

Company Number: 13148224

Analysis Date: 2025-07-29 21:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Tadworth Commercial Services Limited is a micro private limited company operating in quantity surveying activities. The company is active with timely filings and no overdue accounts or returns. However, net assets have declined significantly from £4,812 in 2024 to £2,335 in 2025, indicating a weakening financial position. The company’s share capital is minimal (£2), reflecting a small capital base. The current director, Mr Neil Dearmer, holds controlling interest and is an experienced quantity surveyor, suggesting competent management. Given the modest scale, declining net assets, and limited liquidity, credit approval should be conditional on close monitoring of financial performance and cash flow.

2. Financial Strength:
   The balance sheet shows a reduction in net assets by over 50% year-on-year, from £4,812 to £2,335. Current assets have decreased materially from £6,829 to £3,161, although current liabilities have reduced proportionally, maintaining positive net current assets of £2,545. The company has low fixed assets (not disclosed explicitly but implied by micro-entity status and small balance sheet). Shareholders’ funds mirror net assets, confirming no hidden liabilities. Overall, the company's financial strength is weak but not insolvent; the diminishing equity base signals caution.

3. Cash Flow Assessment:
   Current assets primarily include cash and short-term receivables, with net current assets positive but halved compared to the prior year. The reduction suggests tightening working capital, potentially due to slower collections or reduced cash reserves. The company employs only 2 people, implying limited overheads but also limited operational scale. The liquidity position is adequate to cover short-term liabilities, but the significant drop in current assets should be watched. No audit is conducted, so detailed cash flows are unavailable, increasing the risk profile.

4. Monitoring Points:

• Track net asset trends for continued erosion or recovery.
• Monitor current asset composition and days sales outstanding (DSO) to assess working capital health.
• Review director changes and any impact on governance or operations (Mrs Pauline Dearmer resigned end 2024).
• Watch for any overdue filings or changes in payment behavior to suppliers and creditors.
• Assess any changes in business activity or contracts that may affect revenue stability.