TAM FINLAY INDUSTRIES LTD

Executive Summary

Tam Finlay Industries Ltd is a small, micro-entity with limited financial history but currently maintains positive liquidity and net assets. The recent decline in net assets and working capital suggests caution; credit should be extended conservatively with conditions and ongoing monitoring. The company’s financial position is fragile but not impaired, warranting a conditional credit approval with attention to future financial performance.

TAM FINLAY INDUSTRIES LTD - Analysis Report

Company Number: 14401627

Analysis Date: 2025-07-20 16:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Tam Finlay Industries Ltd is a very small, micro-entity company with limited financial history, incorporated in late 2022. The company shows positive net assets and working capital but has experienced a decline in net assets from £3,142 in 2023 to £1,483 in 2024. Given the small scale of operations, limited profitability data, and recent asset reduction, credit facilities may be considered but should be modest and subject to ongoing monitoring. The single director and shareholder controlling 100% of voting and share capital suggests centralized decision-making but also concentration risk.

2. Financial Strength: The balance sheet reflects a micro-entity with total net assets of £1,483 as of 31 October 2024, down from £3,142 the prior year. Current assets stand at £3,585 against current liabilities of £1,862, yielding positive net current assets of £1,723, indicating an ability to cover short-term obligations. However, the decline in net assets and net current assets year-on-year signals potential erosion of capital or reduced retained earnings, which warrants cautious interpretation. No fixed assets are reported, implying reliance on liquid assets and minimal tangible collateral.

3. Cash Flow Assessment: Current ratios and net working capital remain positive, with current assets nearly double current liabilities, suggesting adequate liquidity to meet immediate obligations. The company’s single-employee structure and exemption from audit under micro-entity provisions suggest a lean cost base. However, the reduction in current assets (from £4,613 to £3,585) and increase in current liabilities (from £1,231 to £1,862) over the year may indicate tighter cash flows or increased short-term obligations that need close attention.

4. Monitoring Points:

• Continued tracking of net assets and working capital trends to detect further erosion.
• Cash flow statements (if available) to assess operating cash generation.
• Profitability indicators and retention of earnings in subsequent filings.
• Director’s management of liabilities given the concentrated ownership and control.
• Compliance with filing deadlines and any changes in company status or control.