TODD DEVELOPMENTS LTD

Executive Summary

Todd Developments Ltd is a small construction business with marginal net assets and significant working capital deficits, indicating liquidity constraints despite some fixed asset investments. The company’s ability to meet short-term obligations is limited, requiring conditional credit approval with ongoing monitoring of cash flow and creditor management. Close scrutiny of financial performance and timely filings is essential to mitigate credit risk.

TODD DEVELOPMENTS LTD - Analysis Report

Company Number: SC692010

Analysis Date: 2025-07-19 12:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Todd Developments Ltd is a micro-entity operating in construction with limited financial scale but positive net assets. The company shows a very small equity base (£1,559) and a notable increase in fixed assets (£74,132 in 2024 from £45,174 in 2023), indicating some investment in operational capacity. However, net current assets deteriorated significantly from £44,086 in 2023 to a large negative working capital of -£72,573 in 2024. This signals potential liquidity stress and an inability to cover short-term liabilities without relying on fixed assets or external financing. Given the small size, single director, and limited cash/current assets (£1,467), the company’s ability to service debt is constrained. Approval is conditional on close monitoring of cash flow, receivables collection, and creditor management.

2. Financial Strength:
   The company’s net assets remain positive but marginal (£1,559). Fixed assets growth suggests reinvestment but current liabilities have grown sharply to £74,040, far exceeding current assets of £1,467, creating a significant working capital deficit. Shareholders’ funds have declined from £7,507 at formation to current levels, indicating erosion of equity possibly linked to operational losses or capital withdrawals. The balance sheet shows modest asset backing but limited liquidity cushion.

3. Cash Flow Assessment:
   Current assets are very low relative to current liabilities, with net current liabilities of -£72,573 in 2024, worsening from the prior year. This negative working capital position highlights liquidity risk and suggests potential difficulties meeting short-term obligations without additional financing or asset sales. The company’s limited cash or near-cash assets and minimal employee base (1) indicate a small operation with limited internal cash generation. Ongoing cash flow forecasting and creditor negotiation will be critical.

4. Monitoring Points:

• Working capital trends and current asset levels vs. liabilities
• Fixed asset utilization and potential for asset impairment or disposal
• Cash flow from operations and debtor collection efficiency
• Timeliness of filing statutory returns and accounts
• Any changes in director or ownership structure that impact financial control or credit risk
• Industry conditions affecting construction demand and payment cycles