Company Number: 13041960

Analysis Date: 2025-07-20 13:22 UTC

Financial Health Assessment for TEKAHA LIMITED

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1. Financial Health Score: B

Explanation:
TEKAHA LIMITED exhibits strong improvements in its financial position over the latest year, particularly a significant increase in net current assets and net assets, indicating a healthy strengthening of the balance sheet. However, the company's reliance on director advances and relatively modest fixed assets suggest some operational or funding vulnerabilities remain. Overall, the company is in a good financial state but with room for further stability and resilience improvement.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£1,639	Very small fixed asset base; business likely asset-light or in early growth phase.
Current Assets	£150,085	Healthy level of liquid or short-term assets; strong cash and receivables position.
Current Liabilities	£64,535	Moderate short-term obligations; manageable considering current assets.
Net Current Assets	£85,550	Strong positive working capital, indicating good short-term financial health ("healthy cash flow").
Net Assets (Equity)	£85,029	Significant growth from prior years (£3 in 2022 to £85k in 2023), showing accumulation of retained earnings or capital injection.
Share Capital	£1.00	Nominal share capital, typical for micro companies; equity growth is mainly from reserves or director funding.
Director's Loans (Net)	£65,081 owed by company to director	Indicates reliance on director funding; potential risk if not repaid or converted.
Average Number of Employees	2	Very small team, consistent with micro company status.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Symptoms of Recovery and Growth:
  The dramatic increase in net current assets and net assets in 2023 compared to previous years is a clear sign the company has strengthened its financial position. This could be due to increased business activity or significant capital injections, possibly through director advances as indicated by the £65k outstanding loan from the director.

• Director Funding Reliance:
  The company has a significant director loan balance (£65,081), up from a negative balance the previous year. This points to dependence on internal funding to support operations or growth, which is common in small companies but could indicate cash flow constraints if external financing is limited.

• Working Capital Health:
  The current assets comfortably exceed current liabilities, giving the company a solid liquidity position to meet short-term obligations. This "healthy cash flow" symptom suggests the company can manage day-to-day expenses and short-term debts without distress.

• Asset Base and Operations:
  The fixed asset base remains very small, indicating the company is likely service-oriented or does not require significant physical assets. This aligns with its classification under SIC code 64999 (Financial intermediation not elsewhere classified).

• Micro Entity Status Implications:
  As a micro entity, the company benefits from reduced filing and audit requirements, which is reflected in its unaudited financial statements. This limits the depth of external scrutiny but is typical for a company of this size and status.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Reduce Reliance on Director Loans:
  Explore alternative financing options such as small business loans or equity financing to reduce the director loan balance. This will strengthen the company’s independence and improve balance sheet robustness.

• Enhance Asset Base and Operational Capacity:
  If growth is strategic, consider investing in fixed assets or technology that can improve operational efficiency and capacity. Asset-light models are fine, but some investment may help scalability.

• Maintain Strong Working Capital Management:
  Continue to monitor current assets and liabilities to sustain positive net current assets. Efficient management of receivables and payables will preserve liquidity.

• Plan for Future Growth:
  Given the improving financial condition, develop a strategic plan for sustainable growth including marketing, client acquisition, or diversification aligned with the company's financial intermediation activities.

• Prepare for Annual Filings and Compliance:
  Ensure timely preparation and filing of accounts and confirmation statements to maintain good standing and avoid penalties.

• Consider Formal Audit or Review:
  While not required, consider voluntary audit or financial review to provide additional assurance to stakeholders and help identify any financial risks early.

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