TED LEE ENTERPRISES LIMITED
Company number 03469535 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Opinion: CONDITIONAL APPROVAL
The company demonstrates a long trading history (since 1997) and maintained positive net assets of approximately £103k in the latest year. The reduction in total liabilities from £155k to £72k indicates active debt reduction, which is favourable. However, the lack of turnover or profit data (micro-entity accounts) limits full assessment of payment capacity. Approval is conditional on providing proof of recent revenue, profit, and cash flow via management accounts or a signed facility letter with a personal guarantee from the director.
Financial Strength
- Balance Sheet Health: Net assets have been consistently positive over the last nine years, ranging from £67k (2015) to £111k (2023). The slight dip to £103k in 2024 is not alarming but warrants monitoring.
- Leverage: Total liabilities to total assets improved from 58% (2023) to 41% (2024), suggesting reduced reliance on external funding.
- Asset Base: The company holds minimal fixed assets (£2k), meaning its lending security is largely in current assets (debtors, stock, cash). No cash figure is disclosed for recent years, which is a concern.
Cash Flow Assessment
- Liquidity: Net current assets (working capital) stood at £101k in 2024, down from £108k in 2023. This is still a healthy buffer but declining.
- Debt Service Ability: Without turnover or profit data, we cannot calculate interest cover or debt service ratios. The reduction in current liabilities suggests the company has been able to pay down debts, but we cannot confirm ongoing cash generation.
- Working Capital Cycle: As a freight transport business, receivables and payables management is key. The drop in current assets from £263k to £173k may indicate faster collection or reduced activity—both need clarification.
Monitoring Points
- Request quarterly management accounts for the next 12 months, including turnover, gross profit, and net profit.
- Monitor the trend in net current assets; a continued decline below £80k would be a trigger for review.
- Obtain a recent aged debtor and creditor report to assess payment cycles.
- Check for any new borrowing or director loan movements (not disclosed in micro accounts).
- Confirm that the director’s personal guarantee is obtained and in place.
Executive Summary