TIDAL STREAM LIMITED

Executive Summary

Tidal Stream Limited is an early-stage micro company with a modest positive net asset position and limited financial history. Credit approval is recommended on a conditional basis, requiring careful ongoing monitoring of liquidity and trading performance. The company’s small scale and unproven cash flow generation present moderate risk, mitigated by the director’s full ownership and involvement.

TIDAL STREAM LIMITED - Analysis Report

Company Number: 15223022

Analysis Date: 2025-07-29 16:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Tidal Stream Limited is a newly incorporated micro private limited company with minimal financial history, limiting the depth of credit analysis. The company has a positive net current asset position (£1,219) as at 31 October 2024, indicating a basic ability to cover short-term liabilities. However, the small scale of operations (one employee, single director/owner) and the absence of trading history beyond the first year suggests limited financial resilience and unproven cash flow generation. Approval of credit facilities should be conditional, requiring ongoing monitoring of trading performance and regular financial updates to mitigate risk.

2. Financial Strength:
   The balance sheet as at the latest filing date shows total net assets of £1,219, entirely comprising net current assets. The company holds current assets of £13,510 against current liabilities of £12,291, resulting in a modest working capital cushion. There are no fixed assets recorded, and shareholders’ funds equal the net assets, reflecting initial capital injection or retained earnings. The micro-entity status and very low asset base imply limited financial buffer to absorb shocks or fund growth without additional capital.

3. Cash Flow Assessment:
   With current assets slightly exceeding current liabilities, liquidity is positive but marginal. The small scale and short trading history mean cash flow stability is uncertain. No information on cash flow from operations or profit/loss is available, but the director’s role as project manager and sole shareholder suggests closely held operations with potentially tight cash management. Close attention should be paid to operating cash flows and timely payment of trade creditors to avoid liquidity stress.

4. Monitoring Points:

• Regular review of updated financial statements to track growth in turnover, profitability, and working capital.
• Monitor the ratio of current assets to current liabilities to ensure ongoing liquidity.
• Watch for any increase in debt levels or delayed payments to suppliers.
• Assess director’s continued involvement and any changes in ownership or management.
• Evaluate trading performance against budget or business plan milestones.