TM LANDSCAPES & CONSTRUCTION LTD

Executive Summary

TM Landscapes & Construction Ltd is a micro-entity with improving short-term liquidity but increased long-term debt and declining net assets, warranting a medium risk rating. The company maintains good compliance and governance but the rising creditor obligations and modest equity base suggest the need for careful monitoring of financial health and debt servicing capacity.

TM LANDSCAPES & CONSTRUCTION LTD - Analysis Report

Company Number: 13080991

Analysis Date: 2025-07-29 17:39 UTC

1. Risk Rating: MEDIUM
   The company shows a mixed financial position with modest net assets but significant long-term liabilities. While it remains active and compliant with filing deadlines, the increase in creditors due after more than one year signals potential solvency pressures.

2. Key Concerns:

• High Long-Term Liabilities: Creditors falling due after more than one year rose sharply to £49,075 in 2024 from £4,610 in 2023, indicating increased debt burden that may strain solvency.
• Declining Net Assets: Net assets decreased from £12,727 in 2023 to £8,860 in 2024, reflecting a weakening equity base which could impair financial stability.
• Low Share Capital & Small Scale: With only £1 share capital and micro-entity status, the company has limited capital buffer and scale, potentially limiting operational flexibility and resilience.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are timely and up to date, indicating good regulatory compliance and governance discipline.
• Improved Current Asset Position: Current assets nearly doubled from £10,488 in 2023 to £21,493 in 2024, enhancing short-term liquidity potential.
• Positive Net Current Assets: Net current assets improved to £13,318 in 2024 from £4,373 in 2023, suggesting improved working capital management.

4. Due Diligence Notes:

• Review the nature and terms of long-term creditors to assess repayment risks and covenants attached.
• Investigate the causes behind the decline in net assets and whether losses are operational or related to asset revaluation/write-offs.
• Confirm cash flow trends and profitability metrics not disclosed here, to better understand liquidity and operational sustainability.
• Assess director background and track record—Michael Wright is the primary controlling individual with 25-50% shares; no disqualifications noted but further background check is prudent.
• Evaluate any contingent liabilities or off-balance sheet obligations that could affect solvency.