TECHMATRON LTD

Executive Summary

TECHMATRON LTD is a very small, micro-scale company with extremely limited financial resources and minimal operational activity. Its current liquidity and net assets are marginal, reflecting weak financial strength and cash flow capability. Given these factors, the company poses a high credit risk and is not recommended for unsecured lending without strong external support or guarantees.

TECHMATRON LTD - Analysis Report

Company Number: 13759412

Analysis Date: 2025-07-29 20:42 UTC

1. Credit Opinion: DECLINE
   TECHMATRON LTD demonstrates very limited financial resources and minimal operational scale. Current assets at £374 against current liabilities of £264 provide only a marginal working capital buffer of £110 as of the latest year-end, down significantly from £1,129 the prior year. The absence of debtors and negligible cash balances highlight constrained liquidity. The company has no employees, indicating a small or possibly dormant operational status. Given these factors, the ability to service any meaningful credit facility or absorb operational shocks appears insufficient. No significant growth or strengthening of the balance sheet is evident, and there are no indications of robust financial management or capital investment. Therefore, credit extension without substantial guarantees or collateral would be high risk.

2. Financial Strength:
   The balance sheet is extremely thin with net assets of only £110 in 2023, down from £1,129 in 2022. The company holds no fixed assets and minimal current assets mostly in cash. Net current assets are positive but very modest, providing negligible working capital. Shareholder funds mirror net assets, reflecting no accumulated reserves or retained earnings beyond a nominal amount. The company’s size and asset base place it firmly in the Micro category, indicating limited financial depth and resilience.

3. Cash Flow Assessment:
   Cash at bank dropped sharply from £1,392 in 2022 to £374 in 2023, indicating cash outflows or low cash generation. Debtors are nil, so there is no receivables inflow expected. Current liabilities remain stable at £264, suggesting no increased short-term borrowing but also no relief from payables pressure. The company’s cash conversion cycle appears minimal, but with such small balances, liquidity risk is elevated. No employees or operational scale further constrain cash flow generation potential.

4. Monitoring Points:

• Cash and working capital levels, to gauge liquidity trends.
• Any changes in operational scale, including employee count or debtor balances.
• Timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Any capital injections or shareholder loans that may improve the financial position.
• Director conduct and related party transactions given single controller status.