TAYSIDE RECOVERY SERVICE LTD

Executive Summary

Tayside Recovery Service Ltd is a small, debt-free company with a simple but stable financial profile showing modest growth in net assets. Its very limited liquidity and working capital require cautious credit extension but management’s direct involvement and absence of liabilities support moderate credit approval. Continued monitoring of cash flow and working capital trends is recommended to safeguard against operational risks.

TAYSIDE RECOVERY SERVICE LTD - Analysis Report

Company Number: SC721629

Analysis Date: 2025-07-29 18:46 UTC

1. Credit Opinion: APPROVE with caution
   Tayside Recovery Service Ltd is a micro-entity engaged in motor vehicle maintenance with a clean and straightforward balance sheet. The company shows a modest but consistent increase in net assets from £12,000 in 2022 to £14,150 in 2024, indicating slow but positive growth and prudent capital management. Although current assets are minimal (£150) and there are no current liabilities, the absence of short-term debts reduces immediate liquidity risk. The company’s ability to service debt appears adequate for small credit facilities, but limited working capital suggests it should not be overextended. Management appears stable with directors also as significant shareholders, enhancing oversight and aligned interests.

2. Financial Strength:
   The balance sheet shows a low level of fixed assets (£14k) relative to total net assets (£14.15k). Net current assets are positive but marginal (£150), reflecting very limited liquidity buffers. No current or long-term liabilities are present, implying the company is debt-free and financially conservative. Shareholder funds equal net assets, confirming no external financing. The financial position is stable but fragile due to limited liquid resources and small scale.

3. Cash Flow Assessment:
   Current assets are very low and principally cash or equivalents, but this is sufficient to cover current liabilities which are nil. The company’s micro size and single-employee structure suggest low operating costs, which helps maintain positive cash flow though the accounts do not provide detailed profit and loss or cash flow statements. The absence of creditors and provisions indicates no immediate cash flow pressures. However, the minimal working capital does limit flexibility in the face of unexpected expenses or downturns.

4. Monitoring Points:

• Track growth in current assets and working capital to ensure liquidity improves to support expansion or unforeseen costs.
• Monitor any increase in liabilities or creditor days which could strain cash flow.
• Review profitability and cash flow metrics when available to confirm sustainable earnings and positive operating cash generation.
• Observe any changes in ownership or director involvement that might affect governance or financial strategy.
• Keep an eye on industry conditions in vehicle maintenance that might impact the company’s revenue and margins.