TETACONS DEVELOPMENT LTD

Executive Summary

TETACONS DEVELOPMENT LTD is currently financially distressed, exhibiting consistent negative net assets and poor liquidity, despite being dormant with minimal activity. Without intervention such as capital injection or a strategic decision on operations, the company’s financial health remains at risk. Immediate focus on improving liquidity and addressing negative equity is essential for future viability.

TETACONS DEVELOPMENT LTD - Analysis Report

Company Number: 13112663

Analysis Date: 2025-07-20 14:28 UTC

Financial Health Assessment for TETACONS DEVELOPMENT LTD

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1. Financial Health Score: D (Poor)

Explanation:
The company shows persistent negative net assets and shareholders' funds over the last few years, indicating a state of financial distress. The working capital position is negative, signaling liquidity issues. While the company is classified as dormant and has minimal activity, the financial "vital signs" point to an unhealthy financial state that could jeopardize sustainability without intervention.

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2. Key Vital Signs:

Metric	Latest (2025)	Interpretation
Current Assets	£200	Very low level of liquid or short-term assets
Current Liabilities	£700	More than triple the current assets, a red flag
Net Current Assets	-£500	Negative working capital; cash flow strain likely
Net Assets / Shareholders' Funds	-£700	Negative equity; company owes more than it owns
Share Capital	£100	Very small capital base
Account Category	Dormant	Limited business activity, minimal operations
Employees	1	Minimal operational scale

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3. Diagnosis:

• Liquidity Symptoms: The negative net current assets indicate the company may struggle to meet its short-term obligations. This is like a patient with low blood pressure—indicating poor circulation of financial resources to meet immediate needs.
• Solvency Symptoms: The company has negative net assets and shareholders’ funds that have worsened over time (from -£200 in 2021 to -£700 in 2025). This resembles a chronic condition where liabilities outweigh assets, threatening the company’s long-term viability.
• Dormancy and Activity: Being dormant means the company is not actively trading, which explains the low asset and liability figures, but negative equity raises concern about accumulated losses or obligations.
• Capital Structure: With a nominal share capital of £100 and persistent negative equity, the company’s financial foundation is weak and vulnerable.
• Operational Scale: The company operates with one employee and minimal financial activity, which limits its ability to generate revenue or improve financial health quickly.
• Compliance: The company is up to date with filing deadlines, which is positive from a governance standpoint but does not offset financial weaknesses.

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4. Recommendations:

• Inject Capital: To stabilize the financial condition, the company should consider a capital injection or shareholder loans to improve equity and liquidity—akin to providing essential nutrients to a patient in recovery.
• Review Liabilities: Evaluate and negotiate short-term liabilities to improve liquidity; consider restructuring or settling creditors to reduce immediate financial pressure.
• Activate Operations or Close: Since the company is dormant, management should decide whether to restart trading with a clear business plan or consider formal closure to avoid further financial deterioration.
• Monitor Cash Flow Closely: Implement rigorous cash flow management to prevent liquidity crises if operations resume.
• Seek Professional Advice: Consult insolvency practitioners or financial advisors if the negative equity position worsens or if there are signs of inability to meet obligations, to explore restructuring or administration options before distress escalates.
• Maintain Compliance: Continue timely filing to avoid penalties and maintain corporate good standing during this fragile phase.

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