TIM CALLAGHAN LTD

Executive Summary

Tim Callaghan Ltd shows significant financial deterioration in its latest year, with turnover dropping to a negligible amount and an associated loss, resulting in a sharp decline in net assets. While the company maintains regulatory compliance and sole shareholder control, its operational scale and financial viability appear at risk. Further investigation into the business’s current operations and cash flow is recommended before considering investment.

TIM CALLAGHAN LTD - Analysis Report

Company Number: 13750223

Analysis Date: 2025-07-29 12:58 UTC

1. Risk Rating: HIGH
   This rating is due to the extremely low turnover (£3 in the latest year vs. £55,300 previously), combined with a net loss incurred in 2023 and a significant reduction in net assets. The company’s financial performance and operational scale appear severely diminished, raising concerns about its ongoing viability.

2. Key Concerns:

• Declining Financial Performance: Turnover collapsed from £55,300 in 2022 to £3 in 2023, coupled with a loss of £8,202, suggesting the business is no longer generating meaningful revenue.
• Dwindling Net Assets: Net assets fell from £19,856 to £7,654 in one year, reflecting erosion of capital and potential strain on solvency.
• Limited Operational Scale: The company operates with only one employee (the sole director), no fixed assets, and minimal current assets, which may indicate constrained capacity to recover or expand operations.

3. Positive Indicators:

• Compliance and Governance: All filings (accounts and confirmation statements) are up to date and not overdue, indicating good regulatory compliance.
• Strong Shareholder Control: The sole director and 100% shareholder, Mr. Timothy Callaghan, is actively involved, which can facilitate swift decision-making.
• No Off-Balance Sheet Liabilities: The accounts disclose no off-balance sheet exposures, limiting hidden liabilities.

4. Due Diligence Notes:

• Investigate the cause of the dramatic turnover decline in 2023 and whether it reflects a strategic pause, market issues, or operational failure.
• Review cash flow statements and bank balances (not provided) to assess liquidity beyond balance sheet snapshots.
• Confirm whether the company has ongoing contracts, client base, or pipeline to sustain future operations.
• Understand the business model and how it has evolved since inception in 2021 to contextualize the financial volatility.
• Check for any contingent liabilities or related party transactions not captured in the micro-entity accounts.