THAMES VALLEY CATERING EQUIPMENT LTD

Executive Summary

Thames Valley Catering Equipment Ltd shows marginal solvency with positive net current assets but faces liquidity challenges given the low cash compared to current liabilities. The company is relatively young with limited financial history and a modest equity base, which increases operational risk. Compliance with filing requirements is satisfactory; however, further investigation into receivables quality and creditor composition is recommended to fully assess financial stability.

THAMES VALLEY CATERING EQUIPMENT LTD - Analysis Report

Company Number: 13375620

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net current asset position as of the latest accounts, indicating marginal solvency. However, the low cash balance relative to current liabilities and the significant increase in creditors compared to prior year raise liquidity concerns. Additionally, the company is relatively new with limited financial history and minimal equity, which contributes to operational risk.

2. Key Concerns:

• Liquidity Pressure: Cash at £18,447 against current liabilities of £117,266 suggests potential strain in meeting short-term obligations without relying on receivables collection or refinancing.
• Rapid Increase in Creditors: Current liabilities have more than tripled from previous year, primarily in "Other creditors," which may indicate deferred payments or increased reliance on supplier credit.
• Low Equity Base and Limited History: Shareholders' funds stand at £3,289 with just two years of financial data, limiting the ability to assess financial resilience and operational sustainability fully.

3. Positive Indicators:

• Positive Net Current Assets: The company moved from a negative net current asset position last year to a positive, albeit small, position this year, showing some improvement.
• Receivables Growth: Debtors have increased substantially to £100,910, which if collectible, supports working capital needs.
• Compliance: No overdue filings; accounts and confirmation statements are up to date, indicating good regulatory adherence.

4. Due Diligence Notes:

• Investigate the nature and aging of the large debtor balance to assess collectability and cash flow reliability.
• Clarify the composition of "Other creditors" to understand the reasons for the significant increase and any potential repayment risks.
• Review management plans regarding liquidity management and working capital controls given the high liabilities relative to cash.
• Evaluate related party transactions referenced in notes for any impact on financial stability or conflicts of interest.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not disclosed.