Company Number: 14268299

Analysis Date: 2025-07-29 13:56 UTC

1. Risk Rating: LOW
   TML UTILITY LTD demonstrates a solid balance sheet position with positive net assets and working capital, no overdue filings, and ongoing compliance. The company’s financials indicate prudent asset management and a growing equity base.

2. Key Concerns:

• Limited cash balances: Cash at bank is relatively low at £6,468 despite healthy trade debtors, which could pose short-term liquidity challenges if debtor collections slow.
• Small scale and single employee: Operating with one employee limits operational scale and may constrain business growth or resilience.
• Relatively young company: Incorporated in 2022, the company lacks a long operating history, which may add uncertainty regarding future performance and stability.

3. Positive Indicators:

• Strong net current assets: £36,481 of net current assets suggests a comfortable buffer to meet short-term liabilities.
• Increasing fixed assets base: Investments in tangible assets (£37,643) indicate business expansion or operational strengthening.
• On-time filing and compliance: Recent accounts and confirmation statement were filed on time, indicating good governance and regulatory adherence.
• Profit and loss reserves growth: Shareholders’ funds increased significantly from £18,880 in 2023 to £74,124 in 2024, reflecting retained earnings or fresh capital injections.

4. Due Diligence Notes:

• Review the nature and collectability of trade debtors (£67,490) to assess realisable cash flow and potential credit risk exposure.
• Examine the company’s revenue trends and profitability trends beyond the abridged accounts since full profit and loss figures are not provided.
• Understand the business model and contract terms given the SIC codes related to construction installation and roads to evaluate operational sustainability and risk profile.
• Confirm no contingent liabilities or off-balance sheet risks exist that may impair solvency.
• Verify the source of increase in shareholders’ funds—whether from profits or capital injection—to understand capital structure and funding.