TITAN WHOLESALE CONSUMABLES LIMITED

Executive Summary

Titan Wholesale Consumables Limited demonstrates improving net asset value and compliance with filings but currently operates with tight liquidity and negative working capital. The company’s financial position supports credit approval with conservative limits and ongoing monitoring of cash flows and short-term liabilities. Continued oversight of working capital management and operational cash generation is essential for risk mitigation.

TITAN WHOLESALE CONSUMABLES LIMITED - Analysis Report

Company Number: 14633864

Analysis Date: 2025-07-29 17:40 UTC

1. Credit Opinion: APPROVE with monitoring. Titan Wholesale Consumables Limited is a newly incorporated micro-entity with a short trading history of just over two years. The company shows positive net asset growth and no overdue filings, indicating compliance and reasonable financial management. However, the current net current assets position is marginally negative in the latest year (£-3,520), which suggests tight short-term liquidity. The single director and sole shareholder, Mr. Thomas James Thompson, appears to maintain control and oversight. Recommend credit approval but with conservative limits and review of ongoing cash flow and working capital.

2. Financial Strength: The balance sheet shows growth in total net assets from £47,164 in 2024 to £79,530 in 2025, primarily driven by an increase in fixed assets from £54,250 to £83,050. Current assets decreased notably from £86,860 to £52,825, while current liabilities also declined from £93,946 to £56,345. The company’s net current assets turned from a deficit of £7,086 to a slight deficit of £3,520, indicating improved but still tight liquidity. Overall, shareholders’ funds increased, showing retained earnings or capital injection, which strengthens the equity base. The financial structure is sound but working capital constraints are evident.

3. Cash Flow Assessment: The company’s current liabilities exceed current assets, resulting in negative net working capital, though the deficit has improved. The reduction in current liabilities is positive, but the shrinkage in current assets, particularly cash or receivables, may impact short-term repayment ability. The micro-entity size and low employee count (2 employees) suggest limited operational complexity. The company should demonstrate consistent cash inflows from operations to meet short-term liabilities. Monitoring cash flow statements (not provided) is recommended to confirm liquidity sufficiency.

4. Monitoring Points:

• Net current assets trend: Watch for improvement to positive working capital.
• Cash flow from operations: Confirm stable and sufficient cash generation.
• Creditors turnover and payment terms: Assess if the company is meeting supplier and debt obligations timely.
• Fixed asset utilization: Ensure asset base supports revenue generation and is not over-invested relative to cash flows.
• Director’s financial stewardship: Track any changes in management or control that could affect governance.