TAVISTOCK GREEN LTD

Executive Summary

TAVISTOCK GREEN LTD is experiencing significant financial distress characterized by negative net assets and a substantial working capital deficit driven largely by director loans. While compliance with filing obligations is maintained and the management team appears stable, the company’s current financial condition raises high solvency and liquidity risks. Further investigation into the sustainability of director funding and operational viability is recommended before considering investment.

TAVISTOCK GREEN LTD - Analysis Report

Company Number: 12712716

Analysis Date: 2025-07-29 15:06 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities substantially exceeding current assets and a negative working capital position that has worsened over recent years. The dependency on director loans repayable on demand further exacerbates financial vulnerability.

2. Key Concerns:

• Severe Negative Net Assets: As of 30 June 2024, net liabilities stood at £193,108, indicating the company’s liabilities exceed its assets by a large margin. This negative equity position has deteriorated year-on-year.
• Liquidity Risk and Working Capital Deficit: Current liabilities of £196,824 far surpass current assets of £3,716, resulting in a negative net current asset position of £193,108. This indicates difficulty in meeting short-term obligations without additional funding.
• Reliance on Director Loans: The £196,000 interest-free loan from directors, repayable on demand, forms the bulk of current liabilities. Such related party financing poses risk as it may not be sustainable long-term and could be called in at short notice.

3. Positive Indicators:

• Timely Compliance: The company is up to date with statutory filings (accounts and confirmation statements), showing adherence to regulatory requirements.
• Low Employee Count and Operating Expenses: With only two employees (including directors), overhead costs may be limited, potentially allowing for operational flexibility.
• Experienced Directors: Both directors have relevant professional backgrounds and control significant shares, potentially allowing for informed strategic decisions and access to additional support.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans, including any formal agreements, repayment plans, and the likelihood of continued support.
• Review cash flow forecasts and management plans to address the worsening working capital deficit and ongoing losses.
• Assess the business model sustainability given continuous losses and explore whether the company is pursuing growth, restructuring, or winding down strategies.
• Confirm whether there are any contingent liabilities or off-balance sheet risks not disclosed in the accounts.
• Verify the accuracy and completeness of debtor balances given the sharp decline from prior year.