TIDEHOLD TWO LTD

Executive Summary

Tidehold Two Ltd demonstrates a weak financial framework with negative net assets and inadequate working capital, raising substantial concerns about its ability to service debt. The company’s current financial trajectory lacks positive cash flow and operational activity, leading to a high credit risk profile. Without significant financial restructuring or capital support, credit facilities are not advisable at this stage.

TIDEHOLD TWO LTD - Analysis Report

Company Number: 14094585

Analysis Date: 2025-07-20 12:40 UTC

1. Credit Opinion:
   DECLINE. Tidehold Two Ltd exhibits a precarious financial position characterized by significant liabilities exceeding total assets, resulting in negative net assets and shareholders’ funds. The company’s fixed assets are substantial (£591k), but this is outweighed by long-term and short-term liabilities (£600k+), raising concerns about its ability to meet debt obligations. No employees and minimal current assets indicate limited operational activity and cash inflow. Without evidence of strong cash flow or external financial support, the risk of default on credit facilities is high.

2. Financial Strength:
   The balance sheet shows total fixed assets at £591,338, but current liabilities and long-term creditors total over £600,000, producing a negative net asset value of £12,369 as of 30 May 2024. The negative net current assets (-£3,255) reflect insufficient working capital. The deterioration from prior years (net assets improving slightly but still negative) shows no meaningful improvement. The company is in a net liability position, which undermines capital adequacy and financial resilience.

3. Cash Flow Assessment:
   Current assets are minimal (£2,295), primarily cash or near-cash equivalents, with no employees indicating limited business operations generating cash flow. The company’s current liabilities (£5,550) and long-term creditors (£600,452) significantly exceed liquid assets, indicating poor liquidity and possible reliance on creditor funding. The absence of operating profit or cash flow data, combined with a micro-entity filing, limits transparency but the working capital deficit suggests cash flow strain.

4. Monitoring Points:

• Monitor changes in current and long-term liabilities relative to asset base.
• Track any improvements in net current assets and net asset position in subsequent accounts.
• Watch for changes in business activity or operational cash flow generation that may improve liquidity.
• Observe any director or shareholder capital injections or refinancing arrangements.
• Monitor filing compliance and any indications of financial distress or restructuring.