TOFSS LTD

Executive Summary

TOFSS LTD is a newly incorporated micro-entity operating a licensed restaurant business with initial profitability and a clean regulatory record. While the financial foundations appear sound, the limited operating history and small liquidity buffer warrant further investigation. Overall, current information suggests a low risk profile, but ongoing monitoring is advisable given the concentrated ownership and early stage of operations.

TOFSS LTD - Analysis Report

Company Number: SC771943

Analysis Date: 2025-07-20 11:25 UTC

1. Risk Rating: LOW

The company appears financially stable with positive net assets and profitability in its first accounting period. There are no overdue filings or indications of regulatory non-compliance.

2. Key Concerns:

• Limited financial history: Incorporated in June 2023, the company has only one set of accounts, which limits trend analysis and assessment of business sustainability over time.
• Modest liquidity buffer: Current assets of £5,422 against no reported current liabilities suggest limited working capital cushion, which could be a concern if cash flows fluctuate.
• Concentrated control: Single director/major shareholder (holding 75-100% shares and voting rights) may raise governance and succession risks for investors seeking diverse management.

3. Positive Indicators:

• Profitability: The company generated a net profit of £3,509 on turnover of £150,708 in its first 13 months, indicating initial operational viability.
• Positive net assets: Shareholders’ funds of £9,351 and total net assets of £9,351 demonstrate a sound balance sheet foundation without apparent debt.
• Compliance: No overdue accounts or confirmation statements; timely filings indicate good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Review detailed cash flow dynamics and working capital management to confirm liquidity resilience beyond snapshot current asset reporting.
• Assess market positioning and business model sustainability given limited trading history and small scale.
• Investigate any off-balance sheet liabilities or contingent obligations not disclosed.
• Evaluate director’s background, experience, and any potential related party transactions due to sole control structure.