TILE BAZAAR LIMITED

Executive Summary

Tile Bazaar Limited is currently financially distressed with significant net liabilities and poor liquidity, undermining its capacity to meet short-term obligations. The company's financial trajectory shows instability and insufficient operational cash flow, resulting in a high credit risk. Without clear evidence of turnaround or capital support, credit approval is not advisable at this time.

TILE BAZAAR LIMITED - Analysis Report

Company Number: 12513504

Analysis Date: 2025-07-29 14:57 UTC

1. Credit Opinion: DECLINE
   Tile Bazaar Limited exhibits significant financial distress as of its latest accounts dated 31 March 2024. The company reported net liabilities of £182,273 with negative shareholders' funds of £202,273, indicating insolvency on a balance sheet basis. The current liabilities of £242,888 far exceed current assets of £39,810, resulting in a severely negative net working capital of £-203,078. This liquidity shortfall raises strong concerns about the company's ability to meet short-term obligations and service any additional credit. Furthermore, the financial trajectory is volatile with prior years also showing negative net assets and large swings in working capital, suggesting unstable operations and poor financial resilience. The recent turnover in directors and the appointment of a Chartered Accountant as director may indicate management attempts to stabilize, but financial recovery is not yet evident. Given these factors, approval for credit facilities is not recommended at this stage.

2. Financial Strength:
   The balance sheet reflects weak financial strength. Fixed assets are modest (£20,805) and the company holds limited cash (£15,052), insufficient to cover substantial current liabilities. The negative net assets position indicates accumulated losses and an erosion of equity capital. Share capital is minimal at £100, and although a share premium account of £19,900 exists, this appears insufficient to offset operational losses. The company’s negative net current assets and net liabilities highlight a poor solvency position and reliance on external funding or creditor forbearance to continue trading.

3. Cash Flow Assessment:
   Liquidity is critically constrained. Current liabilities nearly six times current assets, with cash representing only a small portion of current assets. Trade debtors are minimal (£447), implying limited receivables conversion potential. The company’s working capital deficit suggests ongoing cash flow difficulties and an inability to fund day-to-day operations without additional financing. This raises heightened risk of payment delays or defaults on trade creditors and loan repayments.

4. Monitoring Points:

• Ongoing liquidity position and ability to reduce current liabilities
• Trends in net assets and shareholders' funds for signs of capital restoration
• Stability and effectiveness of new management, especially the Chartered Accountant director
• Turnover and profitability improvements in forthcoming accounts
• Any refinancing or capital injection events to strengthen the balance sheet
• Timely filing of accounts and confirmation statements to avoid compliance issues