TAYTON - JOINERY AND LANDSCAPING LTD

Executive Summary

Tayton - Joinery and Landscaping Ltd is a young private company showing signs of financial strain, with negative working capital and minimal equity suggesting high solvency risk. Despite asset growth and increased sales activity, rising debt and ongoing liquidity pressures present significant risks. Further financial detail and operational insight are essential to evaluate the company’s sustainability.

TAYTON - JOINERY AND LANDSCAPING LTD - Analysis Report

Company Number: 14383938

Analysis Date: 2025-07-20 14:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, as evidenced by persistent negative net current assets and extremely low net equity. The financials suggest ongoing operational challenges and elevated leverage which could compromise its ability to meet obligations.

2. Key Concerns:

• Negative Working Capital: The company’s net current assets remain negative (£-7,181 in 2024), indicating current liabilities exceed current assets and potential cash flow stress.
• Minimal Equity Buffer: Shareholders’ funds are extremely low (£77 in 2024), reflecting very limited financial cushion to absorb losses or shocks.
• Rising Long-Term Debt: Introduction of bank loans and hire purchase contracts falling due after more than one year (£12,122 in 2024) increases leverage and fixed financial commitments, heightening solvency risk.

3. Positive Indicators:

• Increasing Asset Base: Tangible fixed assets nearly doubled from £9,000 in 2023 to £19,380 in 2024, suggesting investment in operational capacity.
• Growth in Debtors: Trade debtors increased significantly (£12,650 in 2024 vs. £1,746 in 2023), indicating expanding sales or contracts in the pipeline.
• Timely Filing Compliance: The company is up to date with both accounts and confirmation statement filings, reflecting regulatory compliance and governance diligence.

4. Due Diligence Notes:

• Obtain detailed income statement and cash flow data (not filed) to assess profitability and cash generation, critical for liquidity analysis.
• Investigate the nature and terms of the bank loans and hire purchase agreements to understand financial covenants and repayment schedules.
• Clarify the directors’ current accounts balance (£8,354 owed to directors), including terms and potential impact on cash flow.
• Review the company's business plan and pipeline to assess sustainability of growth given current financial position.
• Confirm absence of any director disqualifications or regulatory actions beyond what is publicly disclosed.