Company Number: 13319894

Analysis Date: 2025-07-29 19:13 UTC

Credit Opinion:
CONDITIONAL APPROVAL. TM LONDON SERVICES LTD shows a stable micro-entity financial profile with modest net assets and positive working capital. However, declining net assets and increasing accruals raise caution. Credit facilities may be extended on conservative terms with close monitoring of liquidity and accrual management.

Financial Strength:
The company operates within the micro category and holds minimal fixed assets (£193 as of March 2024). Net assets have declined from £2,191 in 2021 to £986 in 2024, indicating erosion of equity over three years. This reduction suggests either losses retained or increased liabilities not fully reflected in current liabilities. Shareholders’ funds mirror net assets, confirming no significant external equity injections. The company maintains positive net current assets (£2,183), supporting short-term solvency, but total net assets remain low, limiting financial buffer.

Cash Flow Assessment:
Current assets (£3,400) exceed current liabilities (£1,217), resulting in net current assets of £2,183, which indicates sufficient short-term liquidity. However, accruals and deferred income have increased sharply to £1,390 from £900 the prior year, potentially indicating deferred revenue or pending expenses that may impact future cash flow. The small scale and micro-entity status imply limited cash reserves and sensitivity to working capital fluctuations. The firm has only one employee, suggesting low overheads but also limited operational scale.

Monitoring Points:

• Track net asset trend to ensure equity erosion does not continue unchecked.
• Monitor accruals and deferred income closely to understand cash flow timing and potential liabilities.
• Review debtor and creditor days if available to assess working capital efficiency.
• Watch for any changes in fixed assets or capital structure that may affect credit risk.
• Confirm ongoing compliance with filing deadlines and absence of adverse director conduct.