TAYLOR MADE TILING LIMITED

Executive Summary

Taylor Made Tiling Limited demonstrates compliance with statutory requirements and clear ownership structure. However, the company’s liquidity has tightened significantly, with a sharp drop in net current assets and shareholders’ funds over the last year. This raises medium-level concerns regarding short-term solvency and operational stability requiring further investigation of cash flow and debtor management.

TAYLOR MADE TILING LIMITED - Analysis Report

Company Number: SC678846

Analysis Date: 2025-07-29 20:34 UTC

1. Risk Rating: MEDIUM
   The company shows a modest level of net current assets and shareholders' funds but has experienced a significant decline in net current assets and equity from the prior year. The liquidity position is tight, with current liabilities nearly matching current assets, indicating potential short-term cash flow challenges. However, there is no indication of overdue filings or insolvency proceedings.

2. Key Concerns:

• Declining Net Current Assets: Net current assets have decreased drastically from £6,429 in 2023 to £610 in 2024, suggesting reduced liquidity buffer to meet short-term obligations.
• High Current Liabilities Relative to Current Assets: Current liabilities (£42,201) are very close to current assets (£42,811), leaving little margin for error in cash flow management.
• Decreasing Shareholders’ Funds: Equity has fallen from £17,469 in 2023 to £9,555 in 2024, which may indicate losses or withdrawals impacting the company’s net worth.

3. Positive Indicators:

• Timely Compliance: No overdue accounts or confirmation statements; filings are up to date, reflecting good governance and regulatory compliance.
• Stable Director and Ownership: Single director and 100% ownership by Mr Gary Taylor, providing clear control and accountability.
• No Indication of Insolvency: The company is active with no signs of liquidation or administration.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net current assets and shareholders’ funds between 2023 and 2024, including any losses or unusual expenses.
• Review debtor quality and aging, given the substantial trade and other debtors totaling £36,480 and the reliance on these for liquidity.
• Assess the company's cash flow management practices and ability to service hire purchase contracts and trade creditors given current liabilities.
• Confirm the nature and recoverability of intangible assets (goodwill) and their amortisation policy.
• Understand the business outlook and order book to determine operational sustainability in the near term.