TIDAL RECRUITMENT LIMITED

Executive Summary

Tidal Recruitment Limited is financially stable but showing early signs of strain, with declining working capital and net assets signaling cautious management is required. Strengthening cash flow, controlling costs, and pursuing growth opportunities are essential to maintain healthy financial vitality. Proactive monitoring and strategic adjustments can help prevent further deterioration and support sustainable business health.

TIDAL RECRUITMENT LIMITED - Analysis Report

Company Number: 13166587

Analysis Date: 2025-07-20 13:11 UTC

Financial Health Assessment of Tidal Recruitment Limited

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1. Financial Health Score: C

Explanation:
The company shows basic financial stability with positive net assets and working capital, but there is a clear downward trend in net assets and current assets over the last fiscal year. This signals early symptoms of financial stress. The small scale and micro-entity status limits the complexity of financials, but the decline suggests a need for strategic attention to cash flow and asset management.

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2. Key Vital Signs

Metric	2025 Value (£)	2024 Value (£)	Interpretation
Fixed Assets	3,767	3,902	Stable but minimal investment in long-term assets; typical for a micro company.
Current Assets	47,368	58,127	Declining cash and receivables; potential tightening of liquid resources.
Current Liabilities	36,781	35,895	Slight increase in short-term debts; manageable but requires monitoring.
Net Current Assets (Working Capital)	10,587	22,232	Almost 50% reduction; less buffer to cover short-term obligations — "weakened pulse."
Net Assets (Shareholders' Funds)	14,354	26,134	Shrinking equity base; indicates accumulated losses or asset reductions — "symptom of distress."
Share Capital	1.00	1.00	Nominal share capital, typical for small private companies.
Employees	1	1	Very small operation; limited human resources.

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3. Diagnosis

Tidal Recruitment Limited, a micro private company specializing in employment placement, exhibits early signs of financial fatigue:

• Declining Working Capital: The reduction from £22,232 to £10,587 suggests the company has less liquid buffer to meet immediate liabilities, which could lead to cash flow strain if not addressed.
• Shrinking Net Assets: The halving of net assets from £26,134 to £14,354 over one year implies the company is either consuming retained earnings or experiencing asset depreciation without corresponding revenue growth.
• Stable Fixed Assets but Low Base: Fixed assets remain low and stable, which is expected for a service business but limits collateral for borrowing or investment.
• Small Scale and Limited Resources: With only one employee (presumably the director), operational capacity is minimal, increasing vulnerability to market fluctuations or client loss.
• No Audit Requirement: Micro-entity exemptions mean less rigorous financial scrutiny, which can sometimes delay detection of deeper issues.

Overall, the company is "breathing but weak," with enough capital to continue but showing symptoms that need attention to avoid deterioration.

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4. Recommendations

To improve the financial wellness and strengthen the company’s "heartbeat," the following actions are advised:

1. Enhance Cash Flow Management:

   • Tighten credit control to accelerate debtor collections.
   • Review payment terms with suppliers to optimize cash outflows.
   • Maintain a cash flow forecast to anticipate shortfalls and plan accordingly.

2. Cost Control and Expense Review:

   • Analyze operational costs; reduce non-essential expenditures to protect margins.
   • Consider outsourcing or automation to increase efficiency given the small workforce.

3. Revenue Growth Strategies:

   • Leverage existing client relationships and website presence to secure more placements.
   • Explore diversification within recruitment niches or related services to increase income streams.

4. Capital Structure and Funding:

   • Assess potential for additional capital injection or small business financing if growth opportunities require it.
   • Maintain clear records and timely filings to retain creditworthiness.

5. Regular Financial Monitoring:

   • Implement monthly management accounts review to detect early warning signs.
   • Consider periodic professional financial advice despite exemption from audit.

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