Company Number: 13584829

Analysis Date: 2025-07-20 11:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   TAG UP LTD demonstrates improving financial strength with growing net assets and positive working capital. The company has a stable balance sheet with significant cash reserves relative to current liabilities, indicating an ability to meet short-term obligations. However, the presence of a large non-current financial liability (£100,932) requires monitoring. Approval is conditional on continued positive cash flow and evidence that long-term debt repayments remain manageable.

2. Financial Strength:
   The balance sheet as of 31 October 2024 shows net assets of £109,868, up from £68,787 the previous year, reflecting retained earnings growth and improved equity. Fixed assets consist solely of investments in a subsidiary valued at £100,000. Current assets have more than doubled to £165,826, primarily due to an increase in cash balances (£165,680). Current liabilities have increased to £55,026 but remain well covered by current assets, yielding a healthy net current asset position of £110,800. The company’s gearing is moderate due to a non-current financial liability of £100,932, which should be further scrutinised for repayment terms.

3. Cash Flow Assessment:
   Cash availability has more than doubled year-on-year from £76,589 to £165,680, indicating strong liquidity. The company maintains positive working capital of £110,800, supporting operational needs and short-term creditor payments. Debtors are minimal (£146), suggesting efficient receivables management or low credit risk customers. The significant increase in cash reserves suggests either improved operational cash generation or capital injections. However, the sizeable non-current liabilities suggest future cash outflows that need to be planned for. Overall liquidity is good, but cash flow forecasts should be reviewed to ensure long-term debt servicing capabilities.

4. Monitoring Points:

• Monitor repayment schedule and terms of the £100,932 non-current financial liability to assess long-term solvency risk.
• Track cash flow trends to confirm the sustainability of liquidity improvements.
• Review profitability and dividend policies to understand retained earnings growth and capital structure stability.
• Keep an eye on creditor balances, particularly taxation and social security liabilities, which increased to £15,626, to avoid potential regulatory issues.
• Assess subsidiary performance given the investment represents the majority of fixed assets.