TIDAL ACCOUNTING LIMITED

Executive Summary

Tidal Accounting Limited is a micro-entity showing recent improvement in its financial position, reversing prior negative working capital and increasing net assets. Its small scale and lease commitments pose some liquidity and solvency risks, though current regulatory compliance is satisfactory. Further analysis of cash flows and lease obligations is recommended to fully assess financial stability and operational sustainability.

TIDAL ACCOUNTING LIMITED - Analysis Report

Company Number: 13113954

Analysis Date: 2025-07-20 15:10 UTC

1. Risk Rating: MEDIUM
   The company shows improving net assets and net current assets in the latest financial year, indicating some recovery in financial position. However, the micro-entity status with low share capital and significant lease commitments warrants caution. The presence of current liabilities close to current assets in previous years and relatively small asset base suggest moderate solvency and liquidity risk.

2. Key Concerns:

• Liquidity Risk: Current liabilities in 2023 were almost equal to current assets, resulting in negative net current assets (-£2,033), which only improved to £5,993 in 2024. This tight working capital position could stress cash flows.
• Lease Obligations: The company has non-cancellable operating leases totaling £14,890 over the next five years, which may strain cash resources given the small asset base and limited equity.
• Limited Equity and Capitalisation: Share capital is only £1.00, and while net assets improved to £8,786 in 2024, the company remains very small with minimal financial buffer to absorb shocks.

3. Positive Indicators:

• Improved Financial Position in 2024: The company reversed prior negative working capital and net assets have increased significantly from £1,215 in 2023 to £8,786 in 2024, indicating operational or financial improvements.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating good regulatory compliance and governance practices.
• Stable Management: The director has been in place since incorporation, and the company has a secretary appointed since 2021, suggesting continuity in leadership.

4. Due Diligence Notes:

• Investigate cash flow statements and profit/loss details for 2024 to understand drivers of improved net assets and liquidity.
• Review lease agreements to assess future cash outflows and potential impact on liquidity and operational flexibility.
• Confirm the nature of current liabilities and whether there are any contingent liabilities or related party transactions that could affect solvency.
• Understand the business model and client base stability, given the micro-entity status and small scale of operations.