TEAMWERE LTD

Executive Summary

TEAMWERE LTD displays severely weakened financial health with negative net assets and no working capital, indicating a poor ability to meet financial obligations. The company’s lack of liquidity and eroded shareholder funds present a high credit risk. Credit facilities are not recommended without substantial improvement in financial position and cash flow generation.

TEAMWERE LTD - Analysis Report

Company Number: 14236248

Analysis Date: 2025-07-29 16:09 UTC

1. Credit Opinion: DECLINE
   TEAMWERE LTD’s latest financials reveal a critical deterioration in its balance sheet, with net assets falling to negative £10 as of 31 July 2024 from positive £195 the prior year. The company shows no current or fixed assets and no working capital buffer. This indicates an inability to meet liabilities or support ongoing operations without external funding. The lack of cash or receivables raises significant concerns about liquidity and repayment capacity. Given the negative equity and absence of tangible financial strength, extending credit would pose a high risk.

2. Financial Strength:
   The company’s financial position has weakened sharply. The micro-entity balance sheet shows zero current assets and no fixed assets, with accruals causing a negative net asset position. There are no current liabilities reported, but the negative equity suggests accumulated losses or unrecorded obligations. Shareholder funds have eroded, and the company has no financial cushion to absorb shocks or invest in growth. This weak capital structure undermines creditworthiness.

3. Cash Flow Assessment:
   No positive current assets or net current assets are reported, indicating no working capital available to fund day-to-day operations. The absence of cash or equivalents on the balance sheet implies extremely poor liquidity. Without access to internal funds, the company may rely heavily on external financing or director loans, both of which increase risk. The lack of disclosed creditors or debt also suggests minimal external financing, possibly due to inability to secure it.

4. Monitoring Points:

• Monitor next set of accounts for signs of capital injection or improved asset base.
• Watch cash flow statements or management accounts for evidence of positive operating cash flow.
• Track any director loans or external funding arrangements that may support liquidity.
• Review any changes in company strategy or market conditions in the education and IT consultancy sectors that could impact revenue generation.