Company Number: 14367705

Analysis Date: 2025-07-29 13:35 UTC

1. Risk Rating: HIGH
   Justification: Tappro Holding Limited demonstrates a persistently negative net asset position (£-11,595 as at 30/09/2024) and significantly negative net current assets (£-121,746), indicating solvency and liquidity concerns. The company’s current liabilities substantially exceed its current assets, and there is no indication of revenue generation or employee activity, suggesting operational instability.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s net liabilities and negative working capital point to an inability to cover short-term obligations from current assets. This poses a high solvency risk.
• High Current Liabilities vs. Low Cash and Debtors: Current liabilities of approximately £128k are offset by only £2.7k cash and £3.5k debtors, implying potential liquidity stress and cash flow difficulties.
• Lack of Operational Activity: No employees reported and no turnover disclosed in the accounts implies the company may not be generating operating income, raising questions about business sustainability.

3. Positive Indicators:

• Timely Filings and Compliance: The company is active, up to date with accounts and confirmation statement filings, showing compliance with statutory requirements.
• Tangible Fixed Assets: Ownership of freehold land and buildings valued at £110k could provide some asset backing, potentially usable for refinancing or collateral.
• Experienced Directors and Clear Control: The two directors, who also are the controlling shareholders, have apparent stable control and reside in the UK, which may facilitate focused decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant current liabilities (£127k), including related party balances and creditor composition.
• Clarify the relationship and financial transactions with related parties (e.g., Tapcastle Limited and Tappro UK Limited) as these may impact liquidity and solvency.
• Assess the business model viability given no reported turnover or employees, including planned strategies to restore profitability or recapitalisation efforts.
• Confirm valuation and marketability of the tangible fixed assets and whether they are encumbered.
• Review director backgrounds for any adverse records or financial commitments that may affect governance or risk profile.