THOMAS MICHAELS GROUP LTD

Executive Summary

Thomas Michaels Group Ltd is a newly established micro-entity with negative net assets and minimal working capital, indicating limited financial resilience. The company’s current financial position raises concerns about its ability to meet debt obligations, leading to a decline recommendation for credit facilities. Close monitoring of its financial health and operational developments is essential if reconsidered in the future.

THOMAS MICHAELS GROUP LTD - Analysis Report

Company Number: 14349558

Analysis Date: 2025-07-20 13:32 UTC

1. Credit Opinion: DECLINE
   Thomas Michaels Group Ltd is a micro-entity with minimal financial substance and negative net assets (-£16) as of the latest accounts. The company shows essentially no working capital buffer and has a marginally negative net asset position. Given these factors, it lacks the financial strength to comfortably service debt obligations or sustain operational shocks. Also, the company is newly incorporated (since Sept 2022) with only one employee and no audit or detailed financial disclosures available, increasing uncertainty about management controls and financial stewardship. Without stronger financials or collateral, extending credit is not advisable.

2. Financial Strength:
   The balance sheet is weak, with current assets of £8,782 barely covering current liabilities of £8,798, resulting in negative net current assets of £16. The total net assets are negative, indicating the company’s liabilities slightly exceed its assets. There is no indication of fixed assets or cash reserves, and shareholders’ funds are negative, implying accumulated losses or initial capital erosion. This fragile financial position suggests limited buffer against unforeseen expenses or downturns.

3. Cash Flow Assessment:
   The company's liquidity is constrained, with current liabilities marginally exceeding current assets. The absence of positive working capital means the firm may struggle to meet short-term obligations without external support or additional capital injections. The micro-entity status and one employee suggest a very small operational scale, likely limiting cash generation capacity. No cash flow statement is provided, but the balance sheet implies tight liquidity.

4. Monitoring Points:

• Future financial statements for improvement in net assets and working capital.
• Cash flow trends and any capital injections or loans from shareholders.
• Changes in business scale, employee count, and operational revenues.
• Any director or ownership changes impacting governance quality.
• Timely filing of accounts and confirmation statements to ensure compliance.