TCS SOUTH WEST LTD

Executive Summary

TCS SOUTH WEST LTD is a newly formed micro-entity exhibiting negative net assets and working capital deficits at its first year-end, indicative of startup losses and liquidity risks. The company’s financial position is weak, limiting its capacity to service debt or sustain credit facilities. Credit extension is not advisable at this stage without significant risk mitigation.

TCS SOUTH WEST LTD - Analysis Report

Company Number: 15085017

Analysis Date: 2025-07-29 15:24 UTC

1. Credit Opinion: DECLINE
   TCS SOUTH WEST LTD is a recently incorporated micro-entity with only one year of trading history and currently reports a significant net current liability position (£-14,604) and negative net assets. The company’s working capital position is weak and there is no evidence of profitability or cash reserves to service debt or meet short-term obligations. Given the early stage of the company and its negative equity, extending credit carries high risk. Approval is not recommended without substantial additional collateral or guarantees.

2. Financial Strength:
   The balance sheet shows total current assets of £5,612 against current liabilities of £20,216, resulting in net current liabilities of £14,604. There are no fixed assets recorded. The company’s net assets and shareholders’ funds are negative at £-14,604, indicating that liabilities exceed assets. This weak financial position reflects either startup losses or initial funding shortfalls. The micro-entity exemption and lack of audit suggest limited financial transparency.

3. Cash Flow Assessment:
   With net current liabilities and only one reported employee, the company likely faces liquidity challenges. The absence of cash or cash equivalents data prevents a detailed cash flow analysis, but the negative working capital implies insufficient liquid resources to cover short-term liabilities. Without positive cash flow or external financial support, the company’s ability to meet ongoing operational expenses or service credit lines is questionable.

4. Monitoring Points:

• Track subsequent accounts filings for improvement in net assets and working capital.
• Monitor trade creditors and any overdue payments reported.
• Review cash flow statements or bank confirmations if provided, to assess liquidity trends.
• Observe any changes in ownership/control or director appointments that may affect credit risk.
• Watch for any overdue statutory filings or signs of financial distress given the startup status.