Company Number: 13815227

Analysis Date: 2025-07-29 14:25 UTC

1. Credit Opinion: DECLINE
   TKA RENTALS LIMITED exhibits a weak financial position with persistent negative net assets and shareholders’ funds, deteriorating from -£2,117 in 2022 to -£27,578 in 2023. The company has significant long-term liabilities (£242,118) exceeding its total assets less current liabilities (£214,540), indicating insolvency on a balance sheet basis. The negative net current assets (-£74,689) further suggest liquidity stress. Given the micro-account size, limited operational scale (1 employee), and no profitability or cash flow data indicating improvement, the company currently lacks the financial strength to service new debt or credit facilities reliably.

2. Financial Strength:
   Balance sheet weakness is marked by negative equity and net liabilities. Fixed assets (£289,229) form the majority of total assets but are overshadowed by creditors after one year (£242,118) and current liabilities (£94,978). The company’s net current liabilities indicate working capital deficiency. The negative shareholders’ funds reflect accumulated losses or undercapitalization since inception in late 2021. No evidence of profitability or retained earnings is visible. Overall, the company is financially fragile with solvency concerns.

3. Cash Flow Assessment:
   Current assets are minimal (£20,289) compared to current liabilities (£94,978), resulting in a working capital deficit of nearly £75k. This implies a likely cash flow strain, with insufficient liquid resources to meet short-term obligations. The absence of detailed cash flow statements limits full assessment, but the balance sheet alone suggests poor liquidity management and potential reliance on external funding or shareholder support to continue trading.

4. Monitoring Points:

• Net Current Asset position and liquidity ratios to detect improvements or further deterioration.
• Movements in long-term liabilities and fixed asset valuations to assess solvency changes.
• Evidence of profitability or positive cash flow generation in forthcoming accounts.
• Director’s strategy for recapitalization or debt restructuring.
• Timely filing of accounts and confirmation statements to maintain regulatory compliance.