THE TITANIUM GROUP LIMITED

Executive Summary

The Titanium Group Limited shows positive growth in net assets and working capital, supported by director confidence in ongoing operations. However, significant increases in debtors and liabilities, coupled with substantial hire purchase commitments and director loans, present liquidity and operational risks. Further due diligence on debtor quality, related party transactions, and cash flow commitments is recommended to fully assess financial stability.

THE TITANIUM GROUP LIMITED - Analysis Report

Company Number: 13274989

Analysis Date: 2025-07-20 11:32 UTC

1. Risk Rating: MEDIUM
   Justification: The Titanium Group Limited demonstrates a positive net asset position and growing working capital, indicating some solvency. However, the significant increase in debtors and current liabilities within one year, reliance on director loans, and hire purchase liabilities introduce liquidity and operational risks that require monitoring.

2. Key Concerns:

• Liquidity Risk from Debtors and Liabilities: Debtors have increased sharply to £212,535 (from £22,823), while current liabilities have similarly expanded to £147,181, suggesting potential cash flow timing issues. The cash balance remains relatively low at £8,597.
• Hire Purchase Obligations: The company has significant hire purchase contracts totaling £49,678 (both current and non-current), which may strain cash flows due to contractual payment obligations.
• Director Advances and Related Party Balances: Directors have advanced substantial loans (£13,700 and £13,415) to the company, and there are notable amounts owed from related companies. This may indicate dependency on insider funding and potential related party transaction risks.

3. Positive Indicators:

• Strong Increase in Net Assets and Working Capital: Net assets improved from £10,368 (2023) to £90,945 (2024), and net current assets increased significantly, reflecting business growth.
• Going Concern Statement: Directors confirm no material uncertainty over the company’s ability to continue as a going concern over the next 12 months.
• Timely Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Small Company Exemption Utilized Appropriately: Filing under total exemption full accounts and acknowledgment of non-requirement for audit is in line with company size and regulations.

4. Due Diligence Notes:

• Investigate the nature and collectability of the large debtor balances, especially amounts owed by associates and directors’ current accounts, to assess cash flow reliability.
• Review terms and payment schedules of hire purchase agreements to understand future cash outflows and impact on liquidity.
• Examine the relationship and financial interdependencies with related parties (Titanium Security Solutions Ltd and Titanium Facilities Management Ltd) to evaluate any risk of concentration or conflict of interest.
• Confirm the absence of director disqualifications or any adverse conduct records.
• Assess operational performance and profitability trends not disclosed in the balance sheet to evaluate sustainability beyond asset growth.