TANGLEWOOD PROJECT COMPANY NO. 3 LIMITED

Executive Summary

Tanglewood Project Company No. 3 Limited is strategically positioned in the growing residential nursing care sector but currently faces financial challenges that constrain its operational flexibility. Leveraging its group affiliation and expanding operational capacity offers a pathway to stabilize finances and capture market growth, provided it addresses liquidity management and competitive differentiation.

TANGLEWOOD PROJECT COMPANY NO. 3 LIMITED - Analysis Report

Company Number: 12753712

Analysis Date: 2025-07-29 20:35 UTC

1. Executive Summary
   Tanglewood Project Company No. 3 Limited operates within the residential nursing care sector as a small private limited company. Despite a challenging financial position marked by significant net liabilities and working capital deficits, its integration within a larger group structure and ongoing operational scale-up suggest foundational strategic assets that could be leveraged for growth. The company’s current financial stress underscores the need for focused strategic initiatives to improve liquidity and operational efficiency.

2. Strategic Assets

• Industry Positioning: The company is engaged in residential nursing care facilities (SIC 87100), a sector with growing demand driven by demographic trends such as aging populations. This positions Tanglewood Project Company No. 3 Limited in a market with long-term structural growth potential.
• Group Affiliation: As a subsidiary of Tanglewood Shared Services Limited, the company benefits from financial and operational support, evidenced by intergroup loans mitigating cash flow constraints, enabling continued operations despite negative equity.
• Operational Scale-Up: Employee numbers increased from 31 to 40 within the last year, indicating an expanding operational footprint and capacity to serve more residents, which can translate into higher revenue streams as occupancy grows.
• Asset Base: Ownership of leasehold properties and tangible assets totaling approximately £133k provides a physical foundation for service delivery, contributing to operational stability.

3. Growth Opportunities

• Capacity Expansion: Further scaling of nursing care services aligns with market demand trends; increasing bed capacity or service offerings can capture unmet demand in the local catchment area.
• Operational Efficiency: Addressing the significant working capital deficit by optimizing debtor collections, controlling accrued expenses, and better managing creditor terms can improve liquidity and cash flow, vital for sustainable growth.
• Group Synergies: Leveraging shared services and financial backing from the parent company can facilitate investment in technology, staff training, and marketing, improving competitive positioning.
• Service Differentiation: Introducing specialized care programs (e.g., dementia care, rehabilitation services) could distinguish the company from competitors and command premium pricing.

4. Strategic Risks

• Financial Sustainability: Persistent net liabilities exceeding £1.5 million and negative working capital indicate a reliance on intergroup funding; any withdrawal or reduction of this support poses a significant risk to ongoing operations.
• Regulatory Compliance: Operating in a highly regulated sector, the company must maintain stringent care standards; failure risks penalties or loss of license, which would be catastrophic.
• Competition: The residential nursing care market is competitive with established players; without clear differentiation or scale, the company may struggle to attract and retain clients.
• Management Transition: Recent changes in the executive team (multiple director appointments in 2025) could disrupt strategic continuity unless effectively managed.