TANZ&CO LTD

Executive Summary

TANZ&CO LTD has demonstrated notable financial recovery with improved liquidity and positive net assets after a prior period of distress. The company is stable but small, and while current financial "vital signs" are healthy, focused efforts on profitability and cash reserve growth will be key to sustaining long-term wellness and scaling operations.

TANZ&CO LTD - Analysis Report

Company Number: 13486485

Analysis Date: 2025-07-20 14:49 UTC

Financial Health Assessment Report for TANZ&CO LTD
As of Financial Year Ending 30 June 2024

---

1. Financial Health Score: B-

Explanation:
TANZ&CO LTD exhibits signs of recovering financial health with improved net assets and positive working capital compared to prior years. However, the company remains small in scale (Micro entity) with modest asset levels and limited liquidity buffers. The absence of an audit and reliance on micro-entity provisions suggest relatively simple financial structures but also limited financial data depth. Overall, the company is stable but should address growth and cash flow strengthening to advance to a healthier grade.

---

2. Key Vital Signs: Critical Metrics & Interpretation

Metric	2024 Value	Interpretation
Current Assets	£3,725	Short-term resources available to meet immediate obligations; slightly increased from previous year.
Current Liabilities	£1,350	Short-term debts; reduced compared to prior years, easing pressure on liquidity.
Net Current Assets (Working Capital)	£2,375	Positive and improving, indicating a "healthy cash flow" position and ability to cover short-term liabilities comfortably.
Net Assets / Shareholders’ Funds	£2,375	Positive net worth, showing accumulated retained earnings or equity funding; improved from £1,001 in 2023 and negative in 2023 prior to adjustment.
Average Number of Employees	2	Small workforce consistent with micro-company status; manageable operational scale.
Audit Status	Exempt (Micro-entity provisions)	Limited external assurance, typical for micro companies; implies less complex financial activities.

Trends & Symptoms:

• The company experienced a negative net equity position in 2023 but has since returned to positive net assets, which is a critical symptom of previous financial distress now improving.
• Working capital has doubled from £1,001 to £2,375, a positive indicator of liquidity and operational efficiency.
• The company has maintained compliance with filing deadlines without overdue submissions, indicating good administrative health.

---

3. Diagnosis: What the Financial Data Reveals About Business Health

• Recovery from Past Distress: The negative shareholders’ funds in 2023 suggested a symptom of financial strain, possibly due to excessive liabilities or operating losses. The current year’s positive net assets indicate successful stabilization or recapitalization.
• Liquidity & Cash Flow Health: The positive and improving net current assets reveal a "healthy cash flow" condition, enabling the company to meet short-term obligations without distress. This is a favorable sign for operational continuity.
• Limited Scale but Stable Operations: As a micro-entity with only two employees, the company’s financial "vital signs" reflect modest but stable operations, consistent with retail activities via internet and markets as per SIC codes.
• Governance & Control: Directors with significant control (each 25-50%) show concentrated ownership, which can lead to agile decision-making but also exposes the company to risks if key individuals face challenges. Recent director changes have been orderly and transparent.
• No Audit, Simplified Reporting: While the micro-entity exemption reduces compliance burden, it also limits the depth of financial scrutiny, meaning some financial risks may not be fully apparent.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

1. Enhance Cash Reserves: Although liquidity is currently adequate, building larger cash buffers would provide a safeguard against unexpected expenses or market shocks. Consider improving receivables management or inventory turnover to free up cash.
2. Strengthen Profitability: Focus on increasing sales margins and controlling costs to generate retained earnings, which will build equity and improve solvency. Analyze product lines or market channels for higher-margin opportunities.
3. Plan for Growth Scaling: The company is stable but small. Strategic planning to scale operations—either through expanding product lines, entering new markets, or increasing online presence—can improve long-term viability.
4. Maintain Compliance & Governance: Continue timely filings and consider appointing a company secretary or advisory board to enhance governance as complexity grows. Transparent director succession planning is advisable.
5. Consider External Financial Advice: Even though audit is not mandatory, occasional external review or advisory can help uncover risks and identify growth opportunities early.
6. Monitor Working Capital: Keep a close eye on current assets and liabilities to ensure the company does not develop liquidity issues again.

---

Medical Analogy Summary

Think of TANZ&CO LTD as a patient who recently overcame a bout of financial illness (negative equity) and is now in a recovery phase with improving "vital signs" like cash flow and net worth. The company shows "healthy circulation" of assets to liabilities, but remains small and somewhat vulnerable to shocks. With attentive management and strategic nourishment (investment and growth), it can build resilience and thrive.

---