TIDAL HOSTING LTD

Executive Summary

TIDAL HOSTING LTD is a newly formed micro-entity showing initial financial strain with negative net assets and working capital deficits, typical of a startup in the data hosting sector. While the company is not in immediate critical distress, its financial health requires attention through capital strengthening, cash flow management, and strategic governance to ensure sustainable growth and viability.

TIDAL HOSTING LTD - Analysis Report

Company Number: 14838015

Analysis Date: 2025-07-29 16:37 UTC

Financial Health Assessment of TIDAL HOSTING LTD

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1. Financial Health Score: D

Explanation:
TIDAL HOSTING LTD is a very young micro-entity with minimal financial activity and small-scale operations. The company shows a negative net asset position (£ -339), indicating a balance sheet deficit at this early stage. While not unusual for a startup, this reflects initial funding challenges or early operational expenses exceeding current assets. The financial "vital signs" reveal symptoms of financial fragility rather than stability. The score "D" reflects the need for careful monitoring and proactive financial management to avoid worsening distress.

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2. Key Vital Signs

Metric	Value (£) / Observation	Interpretation
Fixed Assets	£0	No long-term assets; typical for a startup.
Current Assets	£177	Very low cash/debtors; limited liquidity.
Current Liabilities	£518	Short-term debts exceed current assets.
Net Current Assets	-£341	Negative working capital; "cash flow symptoms" indicating tighter liquidity.
Total Assets less CL	-£339	Negative net assets; equity deficit present.
Shareholders' Funds	-£339	Equity capital insufficient to cover liabilities.
Number of Employees	2	Small headcount consistent with micro-entity.
Directors' Situation	One current director, one resigned recently	Possible instability or changes in leadership.

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3. Diagnosis

The financial "symptoms" indicate TIDAL HOSTING LTD is in a fragile early-stage condition:

• Negative net assets reflect that liabilities exceed assets by £339, which can be interpreted as the company being "underweight" financially. This is not uncommon for a startup, but it signals initial capital insufficiency or early losses.

• Negative net current assets (-£341) show working capital is in deficit, meaning the company may face challenges meeting short-term obligations from current resources. This is a "symptom of distress" that requires careful cash flow management.

• No fixed assets suggests the company's business model relies on intangible or hosted services rather than physical infrastructure, which is typical in the data hosting industry.

• Two employees and a recent director resignation hint at a small, possibly evolving management and operational structure, which may impact stability.

Overall, the company's financial "vital signs" suggest it is in a vulnerable but not yet critical state, typical for a micro-entity in its first year. The balance sheet deficit and working capital shortfall are "red flags" that need addressing to avoid progression to more serious financial illness.

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4. Recommendations

To improve financial wellness and stabilize the company's health:

1. Capital Injection:
   Consider increasing shareholder investment or securing external funding to eliminate the negative equity position and boost cash reserves. This will provide a buffer for operational expenses and improve solvency.

2. Cash Flow Management:
   Implement rigorous cash flow monitoring to ensure liabilities can be met as they fall due. Explore negotiating extended payment terms with creditors or managing expenses tightly.

3. Review Operational Efficiency:
   Analyze current costs and staffing to ensure alignment with business activity and revenue generation. This will help reduce the strain on limited resources.

4. Strengthen Governance:
   Stabilize the board by ensuring committed directors are in place and maintaining clear oversight. This is key for strategic decision-making and attracting investor confidence.

5. Plan for Growth:
   Develop a clear business plan outlining revenue growth strategies, target markets, and milestones. Demonstrating a path to profitability will support fundraising and reassure stakeholders.

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