TATHAM CONSULTING LIMITED

Executive Summary

Tatham Consulting Limited is a small but financially stable consulting business with strong net assets and positive working capital. Although turnover has declined significantly in the latest year, profitability and liquidity remain sufficient to meet debt obligations. Continued monitoring of revenue trends and debtor management is recommended to ensure ongoing creditworthiness.

TATHAM CONSULTING LIMITED - Analysis Report

Company Number: 13910856

Analysis Date: 2025-07-20 16:57 UTC

1. Credit Opinion: APPROVE - Tatham Consulting Limited demonstrates a stable financial position with positive net assets and consistent working capital. Despite a decline in turnover from £96,925 in 2023 to £43,058 in 2024, the company remains profitable with a profit before tax of £24,046 and net assets increasing slightly to £29,073. The director, who is also the sole shareholder, shows sound financial stewardship, and there is no indication of distress or adverse director conduct. Given the business's small size and consulting nature, the ability to service debt appears adequate.

2. Financial Strength: The balance sheet reveals a strong liquidity position, with current assets (£46,314) exceeding current liabilities (£18,012) by a comfortable margin, resulting in net current assets of £28,302. Net assets stand at £29,073, supported principally by retained earnings (£29,072), indicating the company is well capitalized relative to its scale. Fixed assets are minimal (£952), reflecting the consulting services model, and there are no long-term liabilities reported. The company’s equity base is stable, with no signs of erosion.

3. Cash Flow Assessment: The cash position has decreased from £45,370 in 2023 to £26,340 in 2024, but remains sufficient to cover short-term liabilities. Debtors have increased to £19,974 from £485, indicating a rise in accounts receivable, which should be monitored for collectability but does not currently suggest liquidity risk. The company’s operating profit (£23,554) and profit before tax (£24,046) support positive cash generation. Working capital remains strong, suggesting the company can meet its short-term obligations without difficulty.

4. Monitoring Points:

• Turnover decline: The halving of turnover year-on-year warrants observation to understand if this is a temporary reduction or a longer-term trend.
• Debtor balances: The sharp increase in trade debtors should be watched to ensure timely collection and avoid cash flow strain.
• Dividend payments: The company has paid dividends (£19,000 in the latest year), which reduces retained earnings; monitoring dividend policy relative to profitability and cash flow is prudent.
• Operating expenses: Keep track of administrative costs relative to turnover to maintain profitability margins.