TMARINE LTD

Executive Summary

TMARINE LTD demonstrates improving financial position with strengthened equity and working capital, supporting its capacity to meet credit commitments. However, modest cash reserves combined with new finance lease obligations require cautious monitoring of liquidity and debtor management. Credit approval is recommended with conditions to ensure continued financial stability and oversight on cash flow.

TMARINE LTD - Analysis Report

Company Number: 14192866

Analysis Date: 2025-07-29 19:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   TMARINE LTD shows improving financial strength over the last two years with increasing net assets and working capital. However, the company carries a material finance lease obligation (£33,673) that increases current liabilities significantly compared to prior year. The relatively low cash balance (£1,585) against rising current liabilities indicates potential liquidity pressure. The company has a single director and one employee, suggesting limited management depth. Approval is recommended with conditions to monitor cash flow closely and require updated financials if liquidity deteriorates.

2. Financial Strength:

• Net assets have grown from £40,595 in 2023 to £83,115 in 2024, driven by investment in fixed assets (plant & machinery) and increased retained earnings.
• Shareholders’ funds are entirely equity-based with no long-term debt aside from finance lease obligations.
• The asset base remains modest but stable, consistent with a micro/small enterprise profile in ship and boat repair.
• The balance sheet shows a prudent structure but increased gearing through lease liabilities, which require scrutiny.

3. Cash Flow Assessment:

• Current assets (£116,499), primarily debtors (£114,914), exceed current liabilities (£66,334) providing net current assets of £50,165, which is healthy working capital.
• Cash on hand is low (£1,585), which raises concerns about immediate liquidity to meet short-term obligations without relying heavily on debtor collections.
• Debtor concentration and collection periods should be reviewed to ensure timely cash inflows.
• The finance lease payments create fixed cash outflows that may strain liquidity if revenue fluctuates.

4. Monitoring Points:

• Monitor debtor aging and cash collection efficiency to manage liquidity risk.
• Watch lease payment obligations and ensure lease terms remain sustainable.
• Track profitability and retained earnings growth to support further asset investment or debt servicing.
• Observe any changes in management or operational scale that could impact governance or financial control.
• Verify no delays or issues with statutory filings and compliance.