Company Number: 14221343

Analysis Date: 2025-07-20 12:14 UTC

Financial Health Assessment for TMAP BJJ WEST HAMPSTEAD LTD

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1. Financial Health Score: D

Explanation:
The company’s financial health is currently weak, primarily due to a significant deterioration in liquidity and net asset position. The latest accounts show negative net current assets and net liabilities, indicating distress in covering short-term obligations. This suggests an urgent need for improved cash flow management and capital restructuring.

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2. Key Vital Signs:

Metric	31-Mar-2024	31-Jul-2023	Interpretation
Current Assets	£52,790	£32,486	Increased cash/debtors/stock - positive sign but needs context
Current Liabilities	£87,601	£9,826	Sharp increase in short-term debts - red flag
Net Current Assets (Working Capital)	-£34,811	£22,660	Negative working capital indicates liquidity problems
Net Assets (Equity)	-£34,811	£22,660	Negative equity signals financial distress
Average Number of Employees	4	4	Stable headcount, no growth stress from staff

Interpretation of Vital Signs:

• Liquidity Crisis: The company’s ability to meet short-term liabilities has reversed from a positive £22.7k to a negative £34.8k within less than a year. This is akin to a patient whose vital signs suddenly deteriorate, indicating an acute symptom of financial distress.
• Negative Net Assets: The company’s total liabilities exceed its assets, implying insolvency on a balance sheet basis. This is a serious symptom showing the company’s capital base has eroded.
• Increased Current Assets: While current assets have increased, the rise in liabilities outpaces this, suggesting increased borrowing or unpaid creditors.

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3. Diagnosis:

TMAP BJJ WEST HAMPSTEAD LTD is showing symptoms of acute financial distress. The negative net current assets and net equity are clear warning signs that the company may be struggling to service debts and maintain operational liquidity. The company’s financial “pulse” has weakened significantly over the last 8 months (from 31 July 2023 to 31 March 2024), moving from a position of healthy working capital to a liquidity deficit.

Given the company is classified as a Micro-entity with 4 employees and operates in sports and recreation education, this financial strain could be due to seasonal cash flow issues, delayed payments from clients, or increased short-term borrowing to cover expenses. The absence of audit requirements means less external scrutiny, but the micro-entity accounts still reflect the harsh reality of its financial condition.

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4. Recommendations:

• Urgent Cash Flow Management:
  Address the liquidity “symptoms” by implementing strict cash flow forecasting and management. Prioritize collection of receivables and negotiate payment terms with suppliers to avoid worsening cash shortages.

• Debt Restructuring:
  Engage with creditors and lenders to restructure short-term liabilities into longer-term arrangements, thereby easing immediate cash flow pressure.

• Capital Injection:
  Consider injecting fresh equity or shareholder loans to restore positive net assets and strengthen the balance sheet, akin to providing a critical transfusion to stabilize the patient.

• Cost Control:
  Review operational expenses closely and reduce discretionary spending to conserve cash while maintaining essential business functions.

• Monitor Financial Health Regularly:
  Set up monthly financial health checks, tracking key metrics such as working capital, cash reserves, and creditor days to detect early signs of distress.

• Seek Professional Advice:
  Given the severity of the financial position, consulting with a financial advisor or restructuring specialist would be prudent to explore turnaround strategies and avoid insolvency proceedings.

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