TAYLORED MORTGAGE AND PROTECTION SOLUTIONS LTD

Executive Summary

Taylored Mortgage and Protection Solutions Ltd is a newly established micro-business showing early signs of financial fragility with negative working capital and minimal shareholder funds. While not yet in crisis, the company needs to urgently improve cash flow, control costs, and consider short-term financing to stabilize liquidity. With timely interventions, it can strengthen its financial health and support sustainable growth.

TAYLORED MORTGAGE AND PROTECTION SOLUTIONS LTD - Analysis Report

Company Number: 15164194

Analysis Date: 2025-07-20 18:45 UTC

Financial Health Assessment of Taylored Mortgage and Protection Solutions Ltd

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1. Financial Health Score: D

Explanation:
The company shows early-stage financial distress signals with negative net current assets and minimal shareholder funds. While it is a young company (incorporated in 2023) and may still be establishing its operations, the current liquidity position is weak, indicating potential issues meeting short-term obligations.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash	983	Very limited cash reserves, representing a "low blood pressure" in financial health—insufficient for buffer.
Current Liabilities	1,466	Short-term debts slightly exceed cash and current assets, indicating "symptoms of cash flow strain."
Net Current Assets	(483)	Negative working capital; liabilities exceed current assets, signaling potential liquidity crisis.
Shareholders’ Funds	38	Minimal equity base; indicates very early stage with limited capital cushion ("thin financial skin").
Tangible Fixed Assets	521	Small investment in office equipment; assets exist but limited scale.
Number of Employees	1	Micro-business scale, likely founder-run or very small team.

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3. Diagnosis

Taylored Mortgage and Protection Solutions Ltd is in the nascent stage of its business lifecycle, having been incorporated less than two years ago. The company is operating in the financial intermediation auxiliary sector (SIC 66190). The "vital signs" reflect a fragile financial condition:

• Liquidity Concern: The company has a negative net current asset position of £(483), meaning its short-term liabilities exceed its current assets including cash. This is analogous to a patient having low circulating blood volume, risking organ perfusion—in business terms, risking inability to pay bills on time.

• Minimal Capital Cushion: Shareholders’ funds stand at only £38, indicating that the business has very little equity "reserve" to absorb losses or finance growth. This is typical for a startup but leaves little margin for error.

• No Audit Requirement: Being a small company with exemption from audit suggests limited operational complexity but also means less external scrutiny of financial health.

• Operational Scale: With just one employee and minimal tangible assets, the company operates on a micro scale, likely focusing on building its client base and revenue streams.

• Cash Flow Status: Cash reserves are less than £1,000, which is perilously low for ongoing operational needs, resembling a patient with dangerously low hydration.

Given these factors, the company’s financial health can be described as precarious but not yet in critical failure. It is common for startups to experience early cash flow constraints, but without intervention, these symptoms could worsen.

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4. Recommendations

To improve financial wellness and avoid progression to a critical state, the company should consider the following actions:

• Improve Cash Inflows: Accelerate revenue generation through marketing, client acquisition, or service enhancement to increase cash inflows. This is akin to providing more nutrients to improve patient vitality.

• Cost Control: Tighten control over expenses to preserve cash. Avoid unnecessary expenditures that exacerbate liquidity stress.

• Short-term Financing: Explore bridging finance options such as overdrafts, invoice financing, or short-term loans to cover immediate liabilities and stabilize cash flow—temporary "IV fluids" to support liquidity.

• Increase Equity Injection: Consider additional capital contributions from shareholders or investors to build a stronger equity base, improving financial resilience.

• Monitor Financial Metrics Regularly: Establish monthly cash flow monitoring and budgeting to detect early warning signs and manage working capital proactively.

• Strategic Planning: Develop a clear business plan with financial forecasts to guide growth and funding needs, ensuring the company’s "health" improves sustainably.

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