Company Number: 14121906

Analysis Date: 2025-07-29 14:16 UTC

1. Credit Opinion: APPROVE with caution. TAZCOM LTD, incorporated in 2022, is an active private limited company operating in IT consultancy and telecommunications. The company shows modest net assets (£9,433 as of June 2024) and small but positive net current assets (£7,463), indicating a basic level of short-term financial stability. While the company is very young and small (3 employees), it has maintained compliance with filing deadlines and shows incremental growth in net assets from £8,153 in 2023 to £9,433 in 2024. However, trade creditors are relatively high (£104,048), which poses some risk to liquidity. The director’s control is concentrated with one individual, which can be a risk factor but also suggests clear decision-making.

2. Financial Strength: The balance sheet shows minimal fixed assets (£1,970) and a current asset base primarily composed of debtors (£61,215) and cash (£68,375). The net current assets are positive but modest, at £7,463, representing a narrow working capital buffer. The company’s net assets and shareholders’ funds have improved slightly year-on-year, indicating minor retained earnings growth (£9,333 profit and loss reserve). The absence of long-term liabilities and provisions is positive, but the high level of trade creditors relative to current assets signals working capital pressure. The company qualifies as a small company under UK thresholds.

3. Cash Flow Assessment: Cash at bank increased from £57,975 (2023) to £68,375 (2024), a positive sign for liquidity, supported by relatively stable debtor levels (£61,215 down from £100,183). However, trade creditors increased to £104,048, potentially straining cash flow if payments are due imminently. The company’s net current assets indicate that current liabilities are covered but only just, so cash flow management will be critical. No details on cash flow statements are available, but the working capital position suggests tight liquidity.

4. Monitoring Points:

• Trade creditors and their aging profile: High trade creditor balances could indicate delayed payments or cash flow constraints.
• Debtor collection efficiency: Debtors have significantly declined, monitor to ensure this trend is sustainable and not due to write-offs.
• Profitability and cash flow trends in future accounts: Watch for consistent profitability to build reserves.
• Director concentration risk: As the sole controller, any changes in management or conduct could impact credit risk.
• Compliance with future filing deadlines: Continued adherence is positive but must be maintained.