TILLEYTREE LIMITED

Executive Summary

TilleyTree Limited maintains a stable financial position with positive net assets and improving liquidity, reflected in a healthy cash balance and positive working capital for the first time in several years. While the company is solvent and operationally sound, close attention to working capital management and profitability monitoring will be key to sustaining financial wellness and supporting future growth.

TILLEYTREE LIMITED - Analysis Report

Company Number: 12999973

Analysis Date: 2025-07-20 12:54 UTC

Financial Health Assessment for TILLEYTREE LIMITED

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1. Financial Health Score: B

Explanation:
TilleyTree Limited demonstrates a generally stable financial position with positive net assets and improving net current assets in the latest year. The company has maintained solvency and adequate liquidity, though some signs suggest the need for cautious management of working capital and liabilities. The score of B reflects a healthy but not robust financial status, with room for improvement in cash flow management and debt control.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Current Assets	45,241	Represents liquid and near-liquid resources; increased from previous years, indicating better short-term asset base.
Cash at Bank	38,691	Healthy cash reserves, significant portion of current assets, indicating good liquidity ("healthy cash flow").
Debtors	0	No outstanding receivables, which reduces credit risk and improves cash flow reliability.
Current Liabilities	43,949	Near parity with current assets, highlighting tight working capital but manageable short-term obligations.
Net Current Assets	1,292	Positive working capital for the first time in recent years, a key sign of operational liquidity improvement.
Total Assets Less Current Liabilities	16,297	Indicates asset base after short-term liabilities, showing a solid asset cushion.
Creditors > 1 year	3,000	Some longer-term liabilities, manageable but should be monitored.
Provisions for Liabilities	2,851	Possible future expenses or obligations accounted for, important for risk management.
Net Assets (Equity)	10,446	Positive net worth, confirming solvency and shareholder equity preservation.
Share Capital	100	Nominal capital base, typical for a small private company.
Employee Count	5	Small workforce, indicating a micro/small company scale with potential for tight operational control.

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3. Diagnosis: Underlying Financial Health and Symptoms

• Liquidity and Cash Flow:
  The company’s "healthy cash flow" is evident from strong cash balances and zero debtor balances, which means cash conversion from sales is timely. The positive net current assets after years of negative working capital signal improving short-term financial health, reducing symptoms of liquidity stress.

• Working Capital Management:
  Current liabilities are close to current assets, suggesting tight liquidity margins. The company must carefully manage payables and inventories (stocks have increased) to avoid cash flow crunches.

• Solvency:
  Positive net assets indicate the company is solvent with equity exceeding liabilities. However, the slight decrease in net assets from £10,655 in 2022 to £10,446 in 2023, along with provisions and long-term creditors, signals the need to monitor longer-term financial commitments, akin to managing chronic conditions.

• Asset Base and Depreciation:
  Tangible fixed assets have decreased, likely due to depreciation. The company is investing in plant, equipment, and fixtures but should monitor asset impairment risks.

• Profitability and Retained Earnings:
  Though detailed profit and loss data is unavailable, retained earnings (profit and loss reserves) have slightly decreased, implying possible modest losses or dividends. This symptom suggests monitoring profitability closely.

• Company Size and Sector:
  Operating in the machining sector, the company is small in scale with 5 employees, which may limit economies of scale but allows agility. The chosen exemption from audit reflects small company status.

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4. Recommendations: Improving Financial Wellness

• Enhance Working Capital:
  Aim to increase net current assets by managing payables and inventory levels more tightly. Negotiate longer payment terms with suppliers if possible and optimize stock turnover to free up cash.

• Monitor and Control Long-Term Liabilities:
  The presence of creditors due after one year and provisions for liabilities means the company should plan repayment schedules carefully and maintain reserves to avoid liquidity shocks.

• Improve Profitability Tracking:
  Initiate or enhance internal profit and loss monitoring to identify sources of margin erosion early. Consider cost control measures and pricing strategies to boost retained earnings.

• Maintain Healthy Cash Flow:
  Continue the practice of minimal debtor balances to avoid cash flow interruptions. Ensure prompt invoicing and possibly incentivize early payments from customers.

• Asset Management:
  Review fixed assets for impairment regularly and ensure capital expenditure aligns with business growth and cash availability to avoid overextension.

• Financial Planning:
  Develop a rolling cash flow forecast and budget to anticipate liquidity needs and plan financing or investment decisions prudently.

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