TIME FOR YOU THANET AND DOVER LTD

Executive Summary

Time For You Thanet And Dover Ltd shows high financial risk due to negative working capital and equity shortly after formation, coupled with explicit going concern uncertainties. While director support and regulatory compliance provide some reassurance, liquidity pressures and ongoing operational viability require thorough examination before investment consideration.

TIME FOR YOU THANET AND DOVER LTD - Analysis Report

Company Number: 15219506

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant solvency and liquidity concerns, with net current liabilities of £11,941 and negative net assets of £1,933 shortly after incorporation. The going concern note highlights material uncertainties, indicating risk to operational stability.

2. Key Concerns:

   1. Negative Net Current Assets: With current liabilities (£16,534) far exceeding current assets (£4,593), the company faces immediate liquidity pressure to meet short-term obligations.
   2. Negative Equity Position: Shareholders' funds are negative (£1,933), reflecting accumulated losses and limited capital buffer to absorb further adverse financial events.
   3. Going Concern Uncertainty: The director’s report explicitly discloses material uncertainties regarding the company’s ability to continue as a going concern, implying reliance on continued director support or external funding.

3. Positive Indicators:

   1. Director Support: The sole director, who is also the 75-100% shareholder, expresses commitment to ongoing support, which may provide a short-term lifeline for liquidity and operational continuity.
   2. No Overdue Filings: The company is up to date with statutory filings, indicating compliance with regulatory requirements and no immediate governance issues.
   3. Early Stage: Incorporated in October 2023, the company is in its initial operational phase, which often involves initial losses and negative working capital as the business scales.

4. Due Diligence Notes:

   1. Clarify nature and terms of current liabilities of £16,534, including whether they are trade creditors, loans, or director loans, and any repayment schedules or covenants.
   2. Assess cash flow projections and director support arrangements to evaluate sustainability beyond the reported period and to understand plans to remedy negative working capital.
   3. Review turnover and profitability trends (not disclosed here) to gauge operational viability, especially given the small asset base and early amortisation of franchise fee intangible assets.
   4. Investigate any contingent liabilities or off-balance sheet exposures not disclosed in the filing that could exacerbate financial risk.