TEDEX CARPENTRY LTD

Executive Summary

Tedex Carpentry Ltd exhibits significant financial weakness with net liabilities and poor liquidity as of its latest accounts. The company’s small scale and concentrated ownership increase risk, and current financials do not support additional credit without mitigating factors. Close monitoring of cash flow and operational improvements is essential before considering credit facilities.

TEDEX CARPENTRY LTD - Analysis Report

Company Number: 14114654

Analysis Date: 2025-07-20 14:41 UTC

1. Credit Opinion: DECLINE
   Tedex Carpentry Ltd’s latest financials as of 31 May 2024 show a significant deterioration in financial position, with net liabilities of £2,660 compared to net assets of £6,883 the previous year. The company’s current liabilities have more than doubled, leading to a negative net current asset position of -£5,550. This indicates liquidity stress and potential difficulty meeting short-term obligations. Given the company is a very small micro-entity with only one employee and a single director who owns full control, this concentrated governance and weak financial footing increases credit risk. There is no evidence of profitability or cash flow strength to support debt servicing.

2. Financial Strength:
   The balance sheet reveals declining fixed assets and current assets alongside rising current liabilities. The drop in total net assets suggests erosion of equity and potential capital depletion. The company’s micro status and modest asset base limit borrowing capacity and financial flexibility. This weak capital structure and lack of readily available buffers reduce resilience to economic or operational shocks.

3. Cash Flow Assessment:
   Current liabilities (£9,899) exceed current assets (£4,349), resulting in negative working capital and highlighting liquidity challenges. This shortfall implies the company may struggle to fund day-to-day operations or new credit without additional capital injection or improved cash management. The absence of detailed cash flow statements restricts full assessment, but balance sheet indicators point to tight liquidity.

4. Monitoring Points:

• Track monthly cash flow and working capital trends to detect further liquidity deterioration.
• Review profitability and revenue growth to assess operational improvement prospects.
• Monitor director’s ability to inject funds or secure external financing.
• Watch for any overdue filings or director changes that may signal distress.
• Assess any changes in trade credit terms or supplier relationships.