TIME OUT DEVELOPMENTS LIMITED

Executive Summary

TIME OUT DEVELOPMENTS LIMITED currently demonstrates weak financial resilience with negative net assets and a working capital shortfall, undermining its capacity to meet debt obligations. The company’s financial position has deteriorated over the past year, and limited operational scale increases vulnerability to adverse conditions. Credit facilities are not recommended without substantive improvements in liquidity and capitalization.

TIME OUT DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13574891

Analysis Date: 2025-07-29 20:19 UTC

1. Credit Opinion: DECLINE
   TIME OUT DEVELOPMENTS LIMITED exhibits weak financial health with current liabilities exceeding current assets, resulting in negative net current assets of £2,942 at the latest year-end. The company has no fixed assets and minimal equity, indicating limited collateral or buffer to absorb financial shocks. Despite being current on statutory filings, the financial trajectory from 2023 to 2024 shows a significant deterioration, with net assets turning negative from £1 positive to -£2,942. This suggests increasing reliance on short-term liabilities which may impair its ability to meet debt obligations reliably. The management team is relatively new (appointed December 2023), with the previous controlling director resigning in May 2024, adding uncertainty around governance stability. Given these factors, the company’s capacity to service debt or honor commercial agreements is currently insufficient without strong guarantees or restructuring.

2. Financial Strength:
   The balance sheet reveals no fixed assets and current liabilities of £250,942 against current assets of £248,000, producing a slight working capital deficit of £2,942. Shareholders’ funds are negative, reflecting accumulated losses or funding structure issues. The micro-entity classification and low employee count (2 in 2024) confirm a small-scale operation with limited financial depth. The negative net asset position signals a weak capital base and limited solvency, increasing default risk under adverse conditions.

3. Cash Flow Assessment:
   Cash balances are not explicitly disclosed but implied to be low or negligible. The near parity between current assets and liabilities suggests tight liquidity management with minimal working capital cushion. The company’s ability to generate positive operating cash flow is questionable given the negative net current assets and lack of fixed assets that could be leveraged. The reduction in employee numbers and director resignation may further impact operational continuity and cash inflows.

4. Monitoring Points:

• Track quarterly management accounts to assess liquidity trends and operational cash flow.
• Monitor changes in current liabilities and any new borrowings that could worsen liquidity.
• Review director appointments and any changes in ownership/control that affect governance.
• Watch for improvements in net assets or capital injections that stabilize the balance sheet.
• Assess timely payment of statutory filings and any late payments to suppliers or creditors.