Company Number: 13595374

Analysis Date: 2025-07-29 19:37 UTC

1. Risk Rating: LOW
   TFCE LTD demonstrates a solid solvency position with net assets increasing significantly year-over-year and positive net current assets. The company is up to date with filings, active, and has no indication of regulatory or governance issues.

2. Key Concerns:

• Elevated Taxation and Social Security Payables: Current liabilities include a substantial taxation and social security balance (£63,435), more than double the prior year, which may indicate a timing issue or potential cash flow pressure.
• Limited Scale and Single Director: The company is micro-sized with only one employee and a sole director controlling 100% of shares and voting rights, which poses concentration risk operationally and in governance.
• Lack of Profit and Loss Disclosure: The profit and loss account is not filed publicly, limiting visibility into revenue streams, profitability, and operational sustainability.

3. Positive Indicators:

• Increased Net Assets and Working Capital: Net assets grew from £20,934 in 2023 to £49,921 in 2024, with net current assets rising to £47,823, indicating improved financial strength and liquidity.
• Strong Cash Position: Cash at bank increased from £49,604 to £79,737, suggesting adequate liquidity to meet short-term obligations.
• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time with no overdue status, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and timing of taxation and social security liabilities to confirm they are manageable and not indicative of cash flow strain or disputes with HMRC.
• Review internal controls and governance given sole director and shareholder setup, including succession planning and risk management practices.
• Obtain or request profit and loss details to assess revenue trends, margins, and operational viability, as these are not publicly available.
• Clarify stock valuation policies and turnover given significant stock holding (£32,641) relative to company size.