TML UTILITY LTD

Executive Summary

TML UTILITY LTD presents a low solvency and compliance risk profile supported by positive net assets, increasing equity, and timely statutory filings. However, limited cash reserves and a short operating history warrant further due diligence, particularly in receivables quality and operational viability. Overall, the company appears financially stable and compliant within its current scale and stage of development.

TML UTILITY LTD - Analysis Report

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.