TLC PARTIES AND EVENTS LTD

Executive Summary

TLC PARTIES AND EVENTS LTD exhibits ongoing financial weakness with negative net assets and limited liquidity, raising material credit risk concerns. Despite some improvement in working capital, the company’s balance sheet remains fragile and equity is eroded. Credit facilities should be declined currently, with close monitoring recommended should the company seek future funding.

TLC PARTIES AND EVENTS LTD - Analysis Report

Company Number: SC710328

Analysis Date: 2025-07-29 13:22 UTC

1. Credit Opinion: DECLINE
   TLC PARTIES AND EVENTS LTD shows a persistently negative net asset position and shareholders' funds (£-5,168 as of 30/09/2023), indicating insolvency on a balance sheet basis. The company has significant liabilities falling due after one year (£20,465), and current assets are insufficient to cover current liabilities, although net current assets improved from a negative £22,312 in 2022 to a positive £1,093 in 2023. The business is a micro entity, has minimal employees (1), and limited fixed assets, which restricts asset-backed lending. The absence of profitability and negative equity suggest a weak financial foundation and elevated credit risk. Without clear evidence of sustainable revenue growth or capital injection, extending unsecured credit or significant facilities is not advisable.

2. Financial Strength:
   The balance sheet reflects ongoing financial distress. The reduction in fixed assets from £19,953 (2022) to £14,718 (2023) may indicate asset disposals or write-downs. Current assets are minimal (£1,093), and although net current assets turned positive, the company carries long-term liabilities of £20,465, which exceed total assets less current liabilities (£15,811). Negative net assets and shareholder funds highlight erosion of equity capital. The company’s micro status means filing requirements are minimal, but the financials show no retained earnings and continued losses impacting financial strength.

3. Cash Flow Assessment:
   Current asset levels are very low, primarily cash or equivalents, and working capital is marginally positive but fragile. Current liabilities include trade creditors and possibly accrued expenses that exceed current assets in prior years, improving only slightly in the last period. The limited scale of operations (average 1 employee) means cash inflows rely heavily on ongoing contract wins and event activity, which may be volatile. The lack of detailed cash flow statements constrains full liquidity analysis, but available data suggests tight liquidity and potential difficulties in meeting short-term obligations without external funding or owner support.

4. Monitoring Points:

• Regular review of net asset position and efforts to return to positive equity
• Cash flow forecasting to track liquidity gaps, especially around event cycles
• Monitoring any changes in long-term liabilities or capital injections
• Assessment of revenue trends and profitability improvements from future accounts
• Director conduct and related-party transactions, given significant control by two individuals
• Timely filing of accounts and confirmation statements to ensure compliance
• Watch for any signs of creditor pressure or late payments that may indicate worsening financial stress