TF RUNNERS LTD

Executive Summary

TF RUNNERS LTD is exhibiting clear financial distress with worsening liquidity and balance sheet insolvency over recent years. The company's negative working capital and net asset position indicate urgent need for cash flow management and capital restructuring. Without prompt corrective action, its financial viability is at risk, but targeted interventions could stabilize and improve its financial health.

TF RUNNERS LTD - Analysis Report

Company Number: 13442568

Analysis Date: 2025-07-20 16:17 UTC

Financial Health Assessment: TF RUNNERS LTD (Year ended 30 June 2024)

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress symptoms, with negative net assets and worsening working capital position over the last three years. While it remains active, the financial "vital signs" indicate a fragile state requiring urgent intervention to restore health.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets (Cash only)	£313	Minimal liquid resources available
Current Liabilities	£3,263	Short-term debts more than 10x cash on hand
Net Current Assets	-£2,950	Negative working capital, indicates liquidity strain
Net Assets (Shareholders Funds)	-£2,950	Net liabilities exceed assets, balance sheet insolvent
Share Capital	£1	Minimal equity base, no buffer for losses
Employee Count	1	Micro-business scale, limited operational capacity

Trend Analysis:

• Net current assets have deteriorated from -£931 (2021) to -£2,950 (2024), showing increasing liquidity pressure ("symptoms of distress" in cash flow management).
• Net assets have declined from -£931 to -£2,950, reflecting accumulated losses or liabilities surpassing assets ("chronic financial illness").
• Cash balance remains minimal and stagnant (~£313), indicating no improvement in liquidity.
• Current liabilities have nearly doubled since 2021, increasing short-term obligations without corresponding asset growth.

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3. Diagnosis

TF RUNNERS LTD is currently in a financially precarious condition. The company shows clear "symptoms" of distress:

• Liquidity crisis: Negative net current assets imply the company cannot cover short-term debts with available liquid assets, risking payment defaults.
• Balance Sheet Insolvency: Negative net assets indicate liabilities exceed assets, a critical red flag akin to a "heart condition" threatening the company’s survival.
• Minimal equity: The tiny share capital (£1) offers no cushion for losses or external shocks.
• Lack of growth or improvement: Over four years, there is no sign of recovery; financial health is worsening.

The company’s industry—freight transport by road—typically requires working capital to manage fuel, vehicle maintenance, and operational costs. The current financial state suggests strain in meeting these operational needs.

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4. Recommendations

To restore financial wellness, TF RUNNERS LTD should consider the following actions:

1. Improve Liquidity Management

   • Seek immediate cash injections either from the director or external financing sources to alleviate short-term liabilities.
   • Negotiate extended payment terms with creditors to reduce immediate cash outflows.

2. Cost Control and Revenue Enhancement

   • Review operational expenses critically and reduce non-essential costs to preserve cash.
   • Explore opportunities to increase revenue, possibly by expanding customer base or improving service efficiency.

3. Capital Restructuring

   • Consider increasing share capital or attracting new investors to strengthen the equity base and restore solvency.
   • Reassess liabilities to explore restructuring or deferral options.

4. Professional Financial Advice

   • Engage with a financial advisor or insolvency practitioner to explore restructuring plans or formal rescue procedures if necessary.
   • Implement robust financial monitoring to detect early signs of distress and act proactively.

5. Operational Review

   • Given the micro scale (1 employee), evaluate whether current business model is sustainable or requires strategic pivot or scaling.

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Medical Analogy Summary:
TF RUNNERS LTD’s financial "vital signs" suggest it is currently in a "critical condition" with symptoms of liquidity and solvency distress. Without immediate "treatment" through cash infusion, cost management, and restructuring, the company risks "financial failure" analogous to organ failure. Early intervention can restore "health" and improve survivability.

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