TBMK HOLDINGS LTD

Executive Summary

TBMK Holdings Ltd is a recently incorporated micro-entity with positive net current assets but a very low equity base. The company demonstrates adequate short-term liquidity to meet current obligations but has limited financial history and scale. Credit facilities may be extended conditionally with close monitoring of equity, liquidity, and cash flow metrics to mitigate risk.

TBMK HOLDINGS LTD - Analysis Report

Company Number: 14156042

Analysis Date: 2025-07-29 16:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   TBMK Holdings Ltd is a micro-entity with a very modest balance sheet and limited financial scale, incorporated recently in June 2022. The company shows a positive net current asset position and positive net assets, but equity is very low at £116 as of June 2024. The company holds sufficient working capital to meet short-term liabilities, but the small scale and limited financial history necessitate monitoring. There is no indication of financial distress or overdue filings. The director and sole significant controller appears stable. Lending may be considered on a small scale with conditions on monitoring and possibly personal guarantees or collateral.

2. Financial Strength:
   The balance sheet shows total net assets of £116 at 30 June 2024, down significantly from £1,056 in 2023. This reduction is due primarily to an increase in accruals and deferred income (£1,731 in 2024 vs £750 in 2023) which are deducted after current liabilities. Fixed assets are minimal at £538. Current assets of £3,456 exceed current liabilities of £2,147, yielding a comfortable net current asset position of £1,309. Shareholders’ funds correspond to the net assets and remain very low, indicating limited equity buffer. The company is solvent but has a thin capital base with limited asset backing.

3. Cash Flow Assessment:
   The company’s current assets exceed current liabilities by £1,309, indicating positive short-term liquidity and working capital adequacy. The average number of employees is 1, suggesting low operating cost base. However, the extremely low net asset base and increase in deferred income liabilities may indicate cash flow timing issues or revenue recognition structures. No audit was required, so full cash flow statements are not available, limiting insight into operational cash generation. Close attention should be paid to cash flow trends and payment patterns.

4. Monitoring Points:

• Equity and net asset trends: Watch for further erosion or improvement in shareholders’ funds.
• Liquidity ratios: Regularly monitor current ratio and quick ratio to ensure ongoing short-term solvency.
• Accruals/deferred income growth: Investigate the nature of these liabilities and their impact on cash flow.
• Debt service capacity: Monitor any new borrowing and repayment capability given modest financial scale.
• Director and control stability: Maintain oversight of changes in directorship or ownership that may affect governance.
• Filing compliance: Continue to ensure timely submission of accounts and confirmation statements.