TELMUT LTD

Executive Summary

The financial data for Telmut Ltd reveals a high-risk profile characterized by ongoing negative equity and liquidity deficits, suggesting challenges in meeting financial obligations. While the company maintains regulatory compliance and has stable fixed assets, the deteriorating financial position warrants thorough due diligence before considering investment exposure.

TELMUT LTD - Analysis Report

Company Number: 12450245

Analysis Date: 2025-07-29 20:26 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns indicated by persistent negative net assets and working capital deficits. The most recent financial year shows an increased net current liability position and overall negative equity, raising doubts about its ability to meet short-term and long-term obligations.

2. Key Concerns:

• Persistent negative shareholders' funds: Shareholders’ equity deteriorated to -£8,311 in 2024 from positive £35,893 in early 2021, indicating accumulated losses and erosion of capital.
• Negative net current assets: The company’s current liabilities exceed current assets by £15,211 as of October 2024, demonstrating liquidity stress and potential cash flow difficulties.
• Long-term creditor obligations: The company carries £7,000 in creditors due after more than one year, adding to financial burden without sufficient asset coverage.

3. Positive Indicators:

• No overdue filings: The company is up to date with both accounts and confirmation statement submissions, reflecting compliance with regulatory requirements.
• Stable fixed assets base: Fixed assets remained consistent at £13,900, suggesting some retained tangible resources which may provide collateral value.
• Experienced director: Appointment of a Chartered Accountant as director in late 2024 may improve financial oversight and governance.

4. Due Diligence Notes:

• Investigate the reasons behind the rapid decline in net assets between early 2021 and subsequent years, including any operational losses or write-downs.
• Assess the company's cash flow management and whether it has access to external financing or shareholder support to cover current liabilities.
• Review contracts, customer base, and revenue streams to determine operational sustainability given the negative equity and liquidity position.
• Confirm absence of related party transactions or contingent liabilities not disclosed in the accounts.
• Evaluate director’s plans and credibility in addressing financial distress given recent leadership change.