Company Number: 13223528

Analysis Date: 2025-07-29 20:25 UTC

1. Credit Opinion: DECLINE
   TCR GROUP SERVICES LTD shows significant deterioration in financial position over the latest reported year ending 29 February 2024. The company moved from positive net assets (£22,310) in 2023 to negative net assets (-£44,755) in 2024, signaling erosion of equity and financial weakness. Additionally, net current liabilities stand at -£83,579, indicating working capital insufficiency and potential liquidity stress. The company also has a substantial tax and social security creditor (£543,125) that greatly exceeds cash and debtors combined. These factors suggest elevated credit risk and limited capacity to service new or existing debt without additional capital injection or operational turnaround.

2. Financial Strength:

• Fixed assets of £47,930 provide some tangible backing but are modest relative to liabilities.
• Current assets increased to £618,524 mainly from debtors (£536,839) but are outweighed by current liabilities of £702,103.
• The large increase in taxation and social security creditors from £316,530 to £543,125 raises concerns about tax payment delays or disputes.
• Shareholders funds are negative, reflecting accumulated losses and likely ongoing operating losses.
• Director advances show the company owes the director over £31k, indicating possible reliance on director loans to support operations.

3. Cash Flow Assessment:

• Cash at bank is £81,685, which is low relative to current liabilities, especially tax and social security obligations.
• High trade debtors (£532,506) may indicate credit risk if collection is delayed or impaired.
• Negative net current assets imply insufficient short-term liquidity to meet immediate obligations without refinancing or asset sales.
• Working capital management appears weak, with creditors growing faster than current assets.
• No income statement was filed, but the balance sheet trends suggest cash flow challenges.

4. Monitoring Points:

• Monitor collection period on trade debtors closely to assess cash flow sustainability.
• Track payment status and any arrangements relating to tax and social security liabilities to avoid enforcement actions.
• Watch for further equity erosion or need for director or third-party capital injections.
• Review any updates on profitability or cash generation once income statement or management accounts become available.
• Assess any changes in creditor terms or refinancing efforts that may alleviate current liquidity constraints.