TETRA TECHNOLOGIES SCOTLAND LTD

Executive Summary

Tetra Technologies Scotland Ltd is a newly established private company with modest net assets but significant short-term liabilities dominated by a director’s loan. While statutory compliance is current and stock levels provide some asset backing, limited cash reserves and dependence on informal financing elevate liquidity and solvency risks. Further investigation into working capital management and director loan terms is advised to assess financial stability.

TETRA TECHNOLOGIES SCOTLAND LTD - Analysis Report

Company Number: SC731785

Analysis Date: 2025-07-20 16:29 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets but a high reliance on a director’s loan account within current liabilities. Limited cash and sizeable short-term liabilities pose liquidity risks. The company is young, with only one year of financial data, making trend analysis impossible.

2. Key Concerns:

• Liquidity Constraints: Cash on hand is only £500 against current liabilities of £55,176, indicating potential short-term cash flow stress.
• Director’s Loan Dependence: £46,771 of current liabilities is a director’s loan, which may imply informal financing and potential repayment risk.
• Limited Operating History: Incorporated in 2022, the company’s single-year accounts provide insufficient evidence of stable operations or sustainable profitability.

3. Positive Indicators:

• Positive Net Current Assets: Despite the high liabilities, the company reports net current assets of £10,324, supported mainly by stock valued at £65,000.
• No Overdue Filings: Annual accounts and confirmation statements are up to date, indicating compliance with statutory requirements.
• Balanced Shareholder Control: Ownership and voting rights are clearly defined between two persons, with no director disqualifications reported.

4. Due Diligence Notes:

• Review terms and conditions of the director’s loan account to understand repayment schedules and any associated risks.
• Assess stock valuation and turnover rates to confirm whether inventory levels are realistic and not overstated.
• Obtain management accounts or cash flow forecasts post-May 2023 to evaluate current liquidity position and operational performance.
• Confirm whether any external financing or credit facilities support working capital needs.
• Investigate reasons for the recent director resignation and its impact on governance and operational continuity.