Company Number: 13842408

Analysis Date: 2025-07-20 11:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Third Eye Labour Supply Ltd exhibits a significant turnaround from net liabilities of approximately £2,000 in 2023 to net assets of £65,354 in 2024. This improvement is primarily driven by increased cash balances and acquisition of tangible assets. However, the company’s current liabilities remain relatively high at £112,288, mostly comprising corporation tax (£72,993) and social security contributions (£36,234), which indicates a tax liability that should be closely monitored. The absence of an income statement limits insight into revenue and profitability trends, but the increase in employees from 1 to 19 suggests operational scaling. Given the short trading history and tax liabilities, credit approval should be conditional on ongoing monitoring of cash flow and tax settlements.

2. Financial Strength
   The balance sheet shows a positive net asset position of £65,354 as of January 2024, a marked improvement from the previous year's negative equity. Tangible fixed assets (£32,110) reflect investment in motor vehicles and equipment, which supports operational capacity. Shareholders’ funds stand at £65,354, all attributable to retained earnings since the share capital remains at £100. The company’s liquidity measured by net current assets is positive (£33,244), but current liabilities are mostly tax-related, which could pressure liquidity if unpaid.

3. Cash Flow Assessment
   Cash at bank and in hand increased substantially to £145,532 from £7,243, indicating good cash inflows or additional funding during the year. However, the significant corporation tax creditor (£72,993) and social security liabilities (£36,234) suggest potential cash outflows that may affect short-term liquidity. The company’s working capital position is positive, but the tax liabilities require careful management to avoid cash flow strain. The increase in employee numbers implies higher ongoing payroll costs, which should be factored into cash flow forecasts.

4. Monitoring Points

• Corporation tax and social security liabilities: Ensure timely payments to avoid penalties and potential enforcement action.
• Cash flow trends: Monitor cash inflows from operations and any reliance on director loans or external funding.
• Profitability data: Review future accounts including profit and loss to assess sustainable earnings and margin development.
• Management changes: Note recent director changes and ensure continuity and experience in financial management.
• Employee costs and operational scale: Confirm that workforce growth correlates with revenue and cash generation.