TMG CONTRACT CODING LTD

Executive Summary

TMG CONTRACT CODING LTD currently operates with extremely limited financial resources, showing a fragile financial condition with minimal net assets and working capital. While compliant with regulatory filings, the company's financial vitality is weak, reflecting negligible operational scale or profitability. To improve its financial health, the company needs to bolster capital, enhance revenue generation, and carefully manage liabilities to build resilience for future sustainability.

TMG CONTRACT CODING LTD - Analysis Report

Company Number: 12509634

Analysis Date: 2025-07-19 12:20 UTC

Financial Health Assessment of TMG CONTRACT CODING LTD as of 31 March 2024

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1. Financial Health Score: Grade D

Explanation:
The company shows a persistently minimal net asset base (£1) over multiple years, indicating a very fragile financial position. While it complies with filing requirements and is active, the extremely thin working capital and lack of operational scale suggest a business with limited financial resilience and growth capability. This grade reflects a company barely maintaining financial "vital signs" without tangible buffers against shocks or expenses.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	Value (2024)	Interpretation
Current Assets	£3,286	Very low cash and receivables; limited liquidity
Current Liabilities	£3,285	Almost equal to current assets, indicating tight liquidity
Net Current Assets	£1	Essentially no working capital; "flatline" cash flow
Total Net Assets	£1	Minimal equity; company lacks a financial cushion
Share Capital	£100	Nominal capital invested; no apparent retained earnings
Average Employees	0	No staff employed; possibly a sole trader or dormant operations
Account Category	Micro	Smallest filing category; limited operational scale
Filing Status	Up to date	No overdue filings; compliant with regulatory demands

Interpretation:

• The company exhibits "symptoms of distress" in its financials — extremely low working capital and net assets point to a fragile financial condition.
• Lack of employees and minimal current assets suggest limited or no active trading operations or a business at a very early stage without growth.
• The flatline net working capital is akin to a patient with no reserves, vulnerable to any financial "shock" such as delayed payments or unexpected expenses.

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3. Diagnosis: What the Financial Data Reveals About Business Health

TMG CONTRACT CODING LTD is a micro-entity with very limited financial resources. Over the past five years, the company has maintained net assets of just £1, indicating no accumulated profits or retained earnings. This suggests the business either has very low revenue or is being used primarily as a holding or non-trading vehicle.

The absence of employees and minimal assets imply the company is not operating at scale and may not be generating meaningful cash flow. The balance sheet is effectively "flat," showing no growth or expansion.

There are no signs of financial distress filings (no overdue accounts or liquidation), which indicates regulatory compliance but does not equate to financial health. The company’s financial statements resemble a patient with stable but critically low vital signs — alive but without robustness.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Increase Capital or Retained Earnings: Inject additional equity or generate profits to build a financial buffer and improve net asset position. This is like boosting a patient’s blood pressure to healthy levels.
• Generate Revenue Streams: Activate or expand business operations to increase current assets (cash and receivables), improving liquidity and cash flow.
• Reduce Liabilities: Minimise short-term debts to improve net current assets and working capital, enhancing the company's ability to meet obligations.
• Operational Review: Assess business model viability. With zero employees and minimal assets, consider whether the company is dormant, and if so, decide whether to wind up or revitalize operations.
• Financial Planning: Develop a budget and cash flow forecast to monitor "vital signs" regularly and prevent liquidity crises.
• Consider Professional Advice: Engage financial advisors or accountants to explore restructuring, tax planning, or funding opportunities.

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