THS NE LTD

Executive Summary

THS NE LTD demonstrates improved net asset and cash positions as of May 2024, showing some recovery and compliance with filing obligations. However, increased liabilities, reliance on debt financing, and modest working capital margins indicate medium liquidity and solvency risk requiring further examination of cash flow and creditor terms. Investors should closely review debt structure, debtor quality, and contingent liabilities to assess ongoing operational stability.

THS NE LTD - Analysis Report

Company Number: 13384617

Analysis Date: 2025-07-29 12:27 UTC

1. Risk Rating: MEDIUM
   The company shows modest positive net assets and current net assets as of 31 May 2024, indicating it meets obligations in the short term. However, the significant increase in current liabilities, particularly bank loans not present in the prior year, and a low net current asset margin highlight liquidity risk. The company is relatively young (incorporated 2021) and has a small share capital base, which increases risk exposure.

2. Key Concerns:

• Liquidity pressure: Current liabilities nearly equal current assets (£131k vs. £136k), with cash improving but still moderate (£67k) relative to liabilities and trade creditors. Increased bank loans (£98k) raise debt servicing concerns.
• Debtors concentration and collection risk: Debtors remain a large portion of current assets (£68k) and have decreased from prior year, suggesting potential collection or revenue challenges.
• Provisions and long-term creditors: Provisions have increased to £7.9k and creditors due after one year of £8.1k appeared in 2024, indicating possible contingent liabilities or deferred obligations requiring monitoring.

3. Positive Indicators:

• Net assets and shareholder funds have improved significantly from £12k in 2023 to £31k in 2024, reflecting retained earnings growth or capital infusion.
• Cash position has improved substantially from £3.6k to £67.7k, enhancing short-term liquidity compared to prior year.
• The business remains active with timely filings and no overdue accounts or returns, indicating compliance with statutory requirements.

4. Due Diligence Notes:

• Investigate nature and terms of recent bank loans and other creditors, including director’s loan balances, to assess debt servicing capability and potential refinancing risk.
• Review debtor aging and credit control procedures to evaluate collectability and risk of bad debts.
• Examine provisions and contingent liabilities details to understand financial impact and timing.
• Assess operational cash flows and profitability (not disclosed) to confirm sustainability beyond balance sheet metrics.
• Confirm director and management stability given recent director resignation and verify whether governance structures are robust.