TAPTON HOUSE DEVELOPMENT LIMITED

Executive Summary

TAPTON HOUSE DEVELOPMENT LIMITED is currently experiencing financial stress characterized by negative working capital and net assets, typical for a newly formed development company. Immediate actions to improve liquidity, control costs, and secure capital injections are essential to stabilize financial health and support future growth.

TAPTON HOUSE DEVELOPMENT LIMITED - Analysis Report

Company Number: 14683926

Analysis Date: 2025-07-29 15:25 UTC

Financial Health Assessment Report for TAPTON HOUSE DEVELOPMENT LIMITED

---

1. Financial Health Score: D

Explanation:
The company exhibits significant financial strain at this early stage of its development. Negative net assets and net current liabilities signal distress symptoms. While it is common for a newly incorporated development company to have early-stage losses or investment outflows, the current financial figures indicate a fragile balance sheet requiring close management attention to avoid worsening financial health.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	585	Very low liquid or short-term assets; limited cash or receivables available.
Current Liabilities	7,497	Debts due within one year; significantly higher than current assets, indicating liquidity stress.
Net Current Assets	-5,912	Negative working capital; company may struggle to meet short-term obligations ("symptom of liquidity distress").
Total Assets Less Current Liabilities	-5,812	Indicates total assets do not cover current liabilities, reflecting a weak asset base.
Net Assets (Shareholders' Funds)	-6,147	Negative equity; company owes more than it owns, a critical warning sign of financial health.
Called up Share Capital Not Paid	100	Small amount of capital yet to be paid, minor concern but should be collected to improve liquidity.
Average Number of Employees	3	Small workforce consistent with micro-entity status; manageable overheads but fixed costs exist.

Interpretation:

• The negative net current assets is akin to a patient with low blood pressure—indicating the business lacks the immediate resources to cover short-term commitments.
• Negative net assets or shareholders' funds resemble "organ failure," indicating the company's liabilities exceed its total assets. This is a serious symptom requiring urgent treatment.
• The company being a micro-entity in building development likely reflects an early-stage project, where initial investment and startup costs cause temporary deficits.

---

3. Diagnosis

TAPTON HOUSE DEVELOPMENT LIMITED is currently in a precarious financial condition, showing symptoms of financial distress primarily due to insufficient liquidity and negative equity. This situation is not uncommon for newly formed companies engaged in building development projects, where upfront costs and delayed income flows create cash flow mismatches.

The negative net assets and working capital deficits suggest the company has funded its activities through liabilities, possibly loans or trade creditors, without yet building asset value or profitability. This is a common startup syndrome but also a risk factor that requires careful management.

The company’s directors, supported by two significant shareholders controlling between 25-75% of shares, must monitor cash flow closely and plan for capital injections or financing to cover liabilities and support project development.

---

4. Recommendations

• Improve Liquidity: Prioritize collecting any due payments, reduce unnecessary expenses, and seek short-term financing if needed to maintain healthy cash flow. Consider accelerating project milestones that generate revenue.
• Capital Injection: Collect the £100 share capital not yet paid and explore further equity funding to shore up net assets and signal financial stability to creditors and partners.
• Cost Control: Keep a tight rein on overheads and employee-related costs given the small team to prevent cash burn.
• Financial Monitoring: Establish regular cash flow forecasts and working capital analysis to detect early warning signs of distress.
• Strategic Partnerships: Engage with stakeholders, including shareholders Abbcabb Limited and Stone Castle Enterprise Limited, to secure support for development phases and funding.
• Plan for Profitability: Develop a roadmap to move from initial investment phase to revenue generation with clear milestones and realistic timelines.

---