Company Number: 12586518

Analysis Date: 2025-07-29 16:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Timperley Manufacturing Limited shows a positive trend in net assets and fixed asset growth, indicating reinvestment and expansion. However, the company consistently reports net current liabilities (negative working capital), which raises concerns about short-term liquidity and the ability to meet immediate obligations without refinancing or additional capital injection. The absence of employees other than the director suggests a small operation, which limits operational risk but also diversification. Overall, credit can be extended with conditions requiring monitoring of liquidity and working capital improvements, and assurance of continued capital support by the sole shareholder/director.

2. Financial Strength:
   The company’s net assets increased substantially from £4,014 in 2020 to £35,360 in 2024, driven by growth in fixed assets (£5,926 to £41,933) and some increase in current assets. This indicates investment in tangible resources and an improving equity base. The shareholder’s funds fully cover net liabilities, showing solvency. However, the persistent negative net current assets (e.g., £-6,573 in 2024) highlight a reliance on longer-term funding or shareholder loans to cover short-term liabilities. The company remains classified as micro-entity, limiting detailed disclosures.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by £6,573 at the latest year-end, which signals potential liquidity stress under tight cash flow conditions. Lack of employees may reduce overhead, but absence of detailed profit and loss or cash flow statements limits insight into operational cash generation. The director’s 75-100% ownership and control imply availability of shareholder support if needed. Monitoring receivables, payables, and cash management will be critical to ensure ongoing liquidity.

4. Monitoring Points:

• Working capital position and ability to reduce net current liabilities.
• Cash flow sufficiency to meet short-term obligations without external funding.
• Continued investment in fixed assets and impact on operational efficiency.
• Any changes in director/shareholder financial support or capital structure.
• Filing compliance and timely submission of accounts and returns (currently up to date).