TAILORED CONTRACT SERVICES LIMITED

Executive Summary

Tailored Contract Services Limited is a newly formed company currently exhibiting early-stage financial distress signals, including negative working capital and equity, alongside negligible cash reserves. Immediate capital injection and operational advancement are essential to stabilize liquidity and improve financial health. With swift remedial action, the company can transition from financial fragility towards a sustainable growth path.

TAILORED CONTRACT SERVICES LIMITED - Analysis Report

Company Number: 15161089

Analysis Date: 2025-07-20 18:57 UTC

Financial Health Assessment for Tailored Contract Services Limited

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1. Financial Health Score: Grade D

Explanation:
Tailored Contract Services Limited shows early-stage financial distress symptoms, reflected by negative net current assets and shareholders’ funds (equity). The company’s financial position is fragile, with minimal cash and current liabilities exceeding current assets by £419. This results in a negative working capital position, indicating liquidity challenges typical in startups or companies yet to build operational cash flows. While this is not uncommon for a company incorporated only in late 2023, the financial health grade is D due to the current inability to cover short-term obligations without additional financing or operational income.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash	1	Critically low cash reserves indicate minimal liquidity buffer.
Current Liabilities	420	Short-term obligations that must be met within a year.
Net Current Assets (Working Capital)	-419	Negative figure indicates inability to cover short-term debts with current assets.
Total Assets Less Current Liabilities	-419	Reflects negative net assets, a sign of financial strain.
Shareholders’ Funds (Equity)	-420	Negative equity implies that liabilities exceed total assets.
Number of Employees	0	No employees, indicating no payroll expense but also no operational scale yet.

Interpretation:

• The negative working capital is a key symptom of financial stress — the company does not have enough liquid assets to settle immediate debts, which may lead to liquidity crises if not addressed.
• The negative equity signals the company started with or has incurred losses or liabilities beyond its capital base, a warning sign for creditors and investors.
• Cash at £1 is effectively non-existent, indicating no cash "oxygen" to fund daily operations or unexpected expenses without external support.
• The absence of employees suggests the company is in a formative or dormant operational stage.

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3. Diagnosis

Tailored Contract Services Limited is in the very early post-incorporation phase, with financial statements covering just over one year since formation. The company shows "symptoms" common for a startup or newly formed business: negligible cash reserves, negative working capital, and negative equity. These symptoms suggest the business has not yet generated operating income or received sufficient capital injections to fund operations and meet liabilities.

The company’s primary activity is "Combined facilities support activities," which implies a service-focused business that may require upfront investment in personnel or equipment. However, at present, without employees or assets, the company is likely still in setup or pre-revenue phase.

Risks identified:

• Immediate liquidity risk due to negative net current assets and a cash balance of £1.
• Negative shareholders’ funds indicate the company’s balance sheet is "unhealthy," potentially limiting credit access or investor confidence without remedial measures.
• Lack of operational scale or revenue evidence in the accounts suggests an early-stage venture still requiring capital or operational traction.

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4. Recommendations

To improve financial wellness and "restore health," the company should consider the following steps:

1. Capital Injection:
   Inject additional equity or obtain short-term financing to increase cash reserves, improve liquidity, and cover current liabilities. This will help build a buffer to meet immediate obligations and fund initial operations.

2. Operational Launch and Revenue Generation:
   Develop and execute a clear business plan to commence operations and generate revenues promptly. Early cash inflows will help reverse negative working capital and improve net assets.

3. Cost Control and Liability Management:
   Scrutinize accrued expenses and liabilities to negotiate extended payment terms or reduce costs where possible to relieve short-term cash pressure.

4. Regular Financial Monitoring:
   Establish frequent financial reviews (monthly cash flow statements, forecasts) to monitor liquidity and solvency closely, to detect symptoms of distress early.

5. Engage Professional Support:
   Seek advice from financial professionals to optimize capital structure, cash flow management, and potential funding opportunities.

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Medical Analogy Summary:
Tailored Contract Services Limited is currently in a "critical care" stage of financial health. The company’s financial "vital signs" show weakness—minimal cash (oxygen), negative working capital (inability to pay immediate debts), and negative equity (structural imbalance). Without prompt intervention through capital infusion and operational progress, the financial condition may deteriorate further.

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