TAYMOUTH MANAGEMENT LIMITED

Executive Summary

Taymouth Management Limited displays medium financial risk characterized by negative equity and significant reliance on intercompany receivables and group support. While regulatory compliance and an unqualified audit report provide some reassurance, liquidity concentration and operational dependence on the parent group remain key concerns. Further due diligence on intercompany balances and cash flow sustainability is recommended to assess ongoing viability.

TAYMOUTH MANAGEMENT LIMITED - Analysis Report

Company Number: 14010161

Analysis Date: 2025-07-29 17:40 UTC

1. Risk Rating: MEDIUM

Taymouth Management Limited shows some concern from a solvency perspective due to persistent net liabilities and negative shareholders’ funds. However, the company benefits from ongoing support from its parent group, which mitigates immediate risk. The current asset base largely comprises significant intercompany debtors, and cash holdings remain low, posing some liquidity concerns. The company is relatively new and growing, but operational sustainability depends heavily on related party transactions and group backing.

2. Key Concerns:

• Negative Equity Position: Net liabilities of approximately £299k at the end of 2023, worsening from £73k the previous year, indicating accumulated losses and capital erosion.
• Liquidity Concentration: Current assets of nearly £4.78m are mostly debtors (£4.75m), primarily amounts due from group undertakings, with only £30k in cash. This concentration and low cash level may impair operational flexibility.
• Dependence on Group Support: The going concern statement references reliance on the parent company and related parties. This dependency could pose risk if group support diminishes or conditions change.

3. Positive Indicators:

• Timely Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance.
• Audit Opinion: Unqualified audit report provides assurance on the accuracy of financial statements.
• Growth in Operations: Increase in average staff count from 8 to 61 within one year suggests business expansion and scaling.
• Ownership and Governance: Clear control by Taymouth Holdings Ltd with full share ownership and voting rights and involvement of experienced directors.
• Industry Sector: Engaged in management of real estate on a fee basis, which can provide stable fee income streams if properly managed.

4. Due Diligence Notes:

• Examine Intercompany Balances: Scrutinize the nature, collectability, and terms of the large debtor and creditor balances with group undertakings to assess liquidity and credit risk.
• Review Going Concern Assumptions: Validate the extent and conditions of parent and related party support underpinning the going concern basis.
• Evaluate Operational Cash Flows: Analyze cash flow statements and projections to confirm the company’s ability to meet short-term obligations without additional group funding.
• Assess Management Stability: Recent director turnover with several resignations in late 2023 and early 2024 warrants assessment of governance continuity.
• Consider Tax Position: Unused tax losses exist but no deferred tax asset recognized; review potential tax benefits and risks.
• Investigate Business Model Sustainability: Understand the scalability and profitability of the fee-based real estate management activities, especially given rapid staff expansion.