TAURUS TRINITY LIMITED

Executive Summary

Taurus Trinity Limited demonstrates a solid financial foundation with strong fixed assets and shareholder equity, characteristic of a healthy holding company. However, its liquidity position is tight due to zero current assets, posing mild short-term risk that is currently mitigated by shareholder support. Enhancing liquidity reserves and monitoring related party balances will improve the company’s financial wellness and future resilience.

TAURUS TRINITY LIMITED - Analysis Report

Company Number: 14417057

Analysis Date: 2025-07-29 18:38 UTC

Financial Health Assessment for Taurus Trinity Limited (as of 31 December 2023)

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1. Financial Health Score: B

Explanation:
Taurus Trinity Limited shows a strong balance sheet with substantial fixed assets (investments in subsidiaries) and solid shareholders' equity. The company has maintained positive net assets and increased its share capital during the year, indicating capital injection and growth in investment holdings. However, the company exhibits a small negative working capital position and zero current assets (cash or receivables) in 2023, which are symptoms of limited liquidity. These factors suggest good underlying asset strength but a mild liquidity concern that prevents a top-grade score.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Fixed Assets	15,358,001	14,300,001	Strong and growing investment in subsidiaries — a healthy asset base.
Current Assets	0	4,784,572	Zero current assets in 2023 is concerning—no cash or receivables.
Current Liabilities	10,213	4,785,352	Very low current liabilities in 2023 compared to prior year; improved creditor position.
Net Current Assets (Working Capital)	-10,213	-780	Negative working capital indicates a liquidity strain, though the amount is small relative to total assets.
Net Assets (Equity)	15,347,788	14,299,221	Strong and growing net assets, showing a solid capital foundation.
Share Capital	15,358,001	14,300,001	Increase reflects capital injection, strengthening equity.
Number of Employees	0	0	No employees indicates a holding company structure with likely minimal operating expenses.

Interpretation of Vital Signs:

• The company’s "heart"—its fixed assets—is robust and expanding, reflecting a well-capitalised holding company.
• Its "blood flow"—current assets to meet short-term obligations—is weak, showing symptoms of limited liquidity or cash flow.
• The "immune system" (equity and shareholder funds) is strong and growing, suggesting resilience and ability to absorb shocks.

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3. Diagnosis

Taurus Trinity Limited functions as a financial services holding company, investing primarily in subsidiaries. The company’s financial statements indicate it is in a stable and healthy financial condition with a solid capital base supported by increased share capital. The absence of employees and operational expenses aligns with the typical profile of a holding company, focusing on investments rather than direct trading.

However, the zero current assets figure in 2023 suggests the company holds no readily available liquid resources such as cash or receivables, which is a symptom of liquidity tightness. Although current liabilities are minimal, the negative working capital indicates the company might rely on the shareholder or group undertakings' financial support to meet short-term obligations. This is corroborated by the notes stating that amounts owed to group undertakings are interest-free and repayable on demand but are being supported by the shareholder.

The directors’ confirmation of going concern based on continued shareholder support is a positive sign, indicating the company is not expected to face immediate financial distress.

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4. Recommendations

• Enhance Liquidity Management:
  Introduce or maintain cash reserves or liquid assets to improve the company’s working capital position. This will help avoid symptoms of short-term financial distress and improve operational flexibility.

• Monitor Related Party Balances:
  Ensure transparent and timely management of amounts owed to group undertakings to prevent any unexpected liquidity shortfalls.

• Maintain Capital Injection Capability:
  Continue leveraging shareholder support to underpin the company’s going concern status and fund investment activities as required.

• Consider Auditing or Review:
  Though exempt, consider periodic independent financial review to reassure stakeholders about the company’s financial health, especially in light of the zero current assets.

• Strategic Planning for Cash Flow:
  Although a holding company, plan for any operational costs or investment opportunities that may require liquid funds, ensuring these do not cause liquidity strain.

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Medical Analogy Summary

Taurus Trinity Limited’s financial "heart" is strong with well-developed "muscle" (fixed assets and equity), indicating a robust foundation. However, its "circulatory system" (liquidity) shows signs of constriction, with no available "blood flow" (cash/current assets) to meet immediate demands. The company is currently stable thanks to the "supportive immune system" (shareholder backing), but improving liquidity would ensure a healthier, more resilient financial state.

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