TIME ACCOUNTS LIMITED

Credit Opinion: CONDITIONAL Time Accounts Limited presents a strengthening balance sheet with consistent equity growth over the last three years and adequate short-term liquidity. However, the conditional rating reflects the inherent limitations of micro-entity accounts, which provide no visibility into profitability, cash flow dynamics, or the quality of debtors. Furthermore, the complex ownership structure involving multiple corporate and individual Persons with Significant Control (PSCs) introduces potential inter-company risks that must be clarified. Credit approval should be contingent on verifying the nature of current liabilities (third-party vs. related-party) and confirming the quality of the current asset book.

Financial Strength The company has demonstrated a strong trajectory in balance sheet consolidation. Net assets have grown significantly from a precarious £411 in 2022 to a robust £53,312 as of May 2025. This represents a steady accumulation of retained profits over the last three years. * Asset Base: Total assets stand at £128,339, almost entirely comprising current assets (£128,251). For an accounting practice (SIC 69201), this is typical and likely represents trade debtors and cash, as fixed assets are negligible (£88). * Liabilities: Total liabilities are £75,642, all classified as current. The current ratio is approximately 1.7x (£128,251 + £1,725 / £75,642), indicating a comfortable margin of safety for covering short-term obligations. * Capital Structure: Share capital is immaterial at £4, meaning the business is entirely funded by retained profits and current liabilities. The absence of long-term debt is favorable, though the composition of current liabilities requires validation.

Cash Flow Assessment While micro-entity filings omit the Profit & Loss and Cash Flow statements, we can infer cash generation from the movement in net assets. The £5,263 increase in net assets (from £48,049 to £53,312) during the 2025 financial year, absent any share capital injections, indicates profitable trading and positive cash flow generation. Net current assets (working capital) of £54,334 provide a reasonable buffer for operational needs. However, the lack of an overdraft facility reported on the balance sheet suggests the company relies entirely on internal cash generation and trade creditors to fund working capital.

Monitoring Points * Debtor Quality: Current assets dominate the balance sheet. As an accounting firm, these are likely to be fee debtors. An aging report should be reviewed to ensure revenue is being converted to cash in a timely manner. * Related Party Liabilities: The PSC register shows overlapping ownership by corporate entities (Time Accounts Holdings Limited, Src-Time Ltd) and individuals. It is crucial to determine if the creditors due within one year include loans from directors or parent companies, which could be subordinated or called on demand. * Key Person Risk: With an average employee count of exactly two (the directors), the firm's revenue-generating capacity is entirely dependent on the continued involvement and health of Mr. Riazi and Mrs. Thatcher. Any disruption to their availability poses an immediate risk to cash flow. * Filing Compliance: The company is up to date with its filing obligations, which is a positive indicator of management quality. This should be maintained as a standard condition of any facility.