TAY DEVELOPMENTS (WIMBLEDON) LTD.

Executive Summary

Tay Developments (Wimbledon) Ltd. is a newly established company showing significant financial stress with liabilities far exceeding assets and a critical liquidity shortfall. Immediate actions focused on cash flow management, capital injection, and cost control are essential to stabilize its financial health and support sustainable growth in its real estate development business.

TAY DEVELOPMENTS (WIMBLEDON) LTD. - Analysis Report

Company Number: 14849434

Analysis Date: 2025-07-29 15:41 UTC

Financial Health Assessment for Tay Developments (Wimbledon) Ltd.

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1. Financial Health Score: D

Explanation:
The company shows significant financial distress, with a large negative net asset position and current liabilities vastly exceeding current assets, signaling a weak liquidity position and poor solvency. Given its start-up status and the extent of its liabilities, the score reflects a need for urgent remedial action to restore financial health.

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2. Key Vital Signs:

Metric	Value	Interpretation
Current Assets	£27,079	Very low level of liquid and short-term assets available to cover immediate obligations.
Cash	£23,665	Cash holdings are minimal compared to liabilities, indicating tight day-to-day liquidity.
Current Liabilities	£2,621,661	Extremely high current liabilities relative to assets; suggests imminent pressure to meet debts.
Net Current Assets (Working Capital)	-£2,594,582	Negative working capital indicates inability to cover short-term debts with current assets; a symptom of liquidity distress.
Net Assets (Shareholders’ Funds)	-£2,594,582	Negative net assets imply the company’s liabilities exceed its assets, a sign of insolvency risk.
Share Capital	£100	Minimal equity base, typical for a newly incorporated entity but inadequate to buffer losses.
Number of Employees	2	Small workforce consistent with micro/small company size.

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3. Diagnosis:

• Liquidity Crisis: The company’s current assets are only about 1% of its current liabilities, signaling a "healthy cash flow" crisis. Like a patient with dangerously low blood pressure, the company is at risk of "collapse" if it cannot meet obligations.
• Negative Net Worth: The large negative net asset value indicates accumulated losses or debts exceeding assets, akin to a patient with chronic conditions untreated over time.
• Start-Up Phase: Incorporated in May 2023 and reporting first accounts in November 2024, the company is in its infancy, which often involves initial high expenditures and financing arrangements that may temporarily skew financial health.
• High Borrowings: The presence of significant bank loans (£791k) and other loans (£1.42M) point to reliance on external funding to finance operations or development projects, common in real estate development but risky without corresponding asset growth.
• Industry Risk: Operating in real estate development and letting, the company is exposed to market cycles, requiring strong capital and liquidity buffers to weather downturns.
• No Audit Requirement & Small Company Regime: The accounts are unaudited and prepared under the small companies regime, so less detailed scrutiny is available, increasing the importance of close monitoring.

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4. Recommendations:

• Urgent Cash Flow Management: Develop a robust cash flow forecast and prioritize payments to avoid default on loans. Explore short-term bridging finance options or renegotiate terms with creditors to ease immediate pressure.
• Capital Injection: Consider equity funding from existing shareholders or new investors to improve the company’s net asset position and provide working capital.
• Cost Control: Review and cut non-essential expenses to preserve cash and extend the company’s financial runway.
• Asset Utilization: Assess the real estate assets for potential sale or leasing to generate income or reduce debt.
• Financial Monitoring: Implement regular, detailed financial reviews akin to patient monitoring in critical care, to detect early signs of distress and act swiftly.
• Strategic Planning: Develop a clear business plan focusing on sustainable growth and profitability to reassure stakeholders and lenders.
• Professional Advice: Engage financial and legal advisors to explore restructuring options if necessary, including possible refinancing or formal insolvency procedures if liabilities cannot be managed.

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Medical Analogy Summary:
Tay Developments (Wimbledon) Ltd. currently exhibits "symptoms of financial distress" characterized by "critical liquidity deficiency" and "negative net worth" akin to a patient with severe systemic weakness. Immediate intervention to stabilize cash flow and restructure liabilities is essential to prevent "financial collapse" and restore "business vitality."

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