TJS HARDWARE LTD

Executive Summary

TJS Hardware Ltd is a newly established micro-entity with a solid short-term liquidity position and up-to-date regulatory compliance. The key risk lies in managing long-term liabilities, which are significant relative to net assets, and the absence of a broader governance framework. Further investigation into creditor terms and operational cash flows will be critical to assess ongoing financial stability.

TJS HARDWARE LTD - Analysis Report

Company Number: 15055419

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and net current assets, indicating solvency at the balance sheet date. However, the presence of significant creditors due after one year (£63,633) relative to net assets (£64,147) and the early stage of the business (incorporated in 2023) introduce some uncertainty regarding long-term financial stability and liquidity.

2. Key Concerns:

• Long-term Liabilities: Creditors due after one year amounting to £63,633 are nearly equal to net assets, which may strain future cash flows if not managed prudently.
• Limited Operating History: Being a recently incorporated company (less than 2 years old) limits the ability to assess operational sustainability and financial trends.
• Single Director and PSC Control: Full ownership and control by one individual could concentrate decision-making risk without broader governance oversight.

3. Positive Indicators:

• Strong Net Current Assets: £111,887 in net current assets suggests good short-term liquidity to cover immediate obligations.
• Compliance with Filing Requirements: Accounts and confirmation statements are up to date, indicating good regulatory compliance.
• Micro-entity Reporting: The company benefits from simplified reporting requirements, reducing administrative burden and costs.

4. Due Diligence Notes:

• Review the nature and terms of the £63,633 long-term creditors to assess repayment risk and covenant obligations.
• Monitor cash flow statements and profit/loss accounts when available to evaluate operational performance and liquidity trends.
• Consider the governance structure given the sole director and sole person of significant control (PSC) to understand decision-making processes and risk management.
• Confirm whether there are any contingent liabilities or off-balance-sheet obligations not disclosed in the micro-entity accounts.