Company Number: 12441145

Analysis Date: 2025-07-29 20:02 UTC

Financial Health Assessment for TOIR LIMITED

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1. Financial Health Score: D

Explanation:
TOIR LIMITED shows significant signs of financial distress. Although it maintains positive net current assets (working capital), it has persistent net liabilities reflected in negative shareholders’ funds over multiple years. The company’s cash reserves have declined steadily, and long-term debt remains substantial relative to its asset base. This grade implies caution—while the company is not insolvent, it is under financial strain and requires corrective measures to restore robust health.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Cash at Bank	21,647	32,295	Healthy cash flow is dwindling, indicating liquidity pressure.
Current Assets	21,647	32,295	All current assets are cash, showing no receivables or stock.
Current Liabilities	23,151	33,041	Current liabilities slightly exceed cash, tight working capital.
Net Current Assets (Working Capital)	-1,504	-746	Negative working capital suggests potential difficulty meeting short-term obligations.
Long-Term Liabilities	23,151	33,041	Bank loans remain high, indicating ongoing debt burden.
Net Assets (Equity)	-1,505	-746	Negative net assets reflect accumulated losses and financial weakness.
Shareholders’ Funds	-1,605	-846	Equity is negative, indicating the company’s liabilities exceed its assets.

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3. Diagnosis: Symptoms Analysis & Overall Condition

Symptoms of Financial Distress:

• Persistent negative net assets and shareholders’ funds over four years suggest the company is operating at a loss or has accumulated deficits that erode equity.
• Declining cash reserves (down ~33% from 2023 to 2024) indicate worsening liquidity and potential cash flow management issues.
• Long-term bank loans remain substantial and have decreased only marginally, highlighting ongoing financial obligations that may strain future cash flows.
• No recorded debtors or stock suggests limited operating activity or possibly a cash-only business model, but this also limits the company’s ability to leverage assets for liquidity.
• Absence of employees besides the director may indicate very lean operations but also limited capacity for growth or operational resilience.

Overall Financial Condition:
TOIR LIMITED is currently solvent but borderline, with negative equity and signs of liquidity stress. The “healthy cash flow” vital sign is weakening, and the company carries a “chronic illness” in the form of long-term debt and accumulated losses. Without intervention, these symptoms could culminate in insolvency or forced restructuring.

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4. Recommendations: Prescription for Financial Wellness

1. Improve Cash Flow Management:

   • Conduct a detailed cash flow forecast to identify shortfalls.
   • Negotiate better payment terms with creditors or refinance existing bank loans to reduce immediate cash outflows.

2. Debt Restructuring:

   • Engage with lenders to explore loan restructuring, such as extending repayment periods or reducing interest costs.
   • Investigate potential for equity injection from the controlling shareholder or investors to strengthen the balance sheet.

3. Operational Efficiency Review:

   • Assess business model viability given the low current assets beyond cash and lack of stock/debtors.
   • Consider diversifying revenue streams or cost-cutting measures to improve profitability.

4. Regular Financial Monitoring:

   • Implement monthly financial reviews to monitor liquidity and solvency indicators closely.
   • Seek expert advisory support to guide financial restructuring and compliance.

5. Compliance and Reporting:

   • Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain corporate reputation.

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