TOM KING PLANT TRAINING LIMITED

Executive Summary

Tom King Plant Training Limited currently maintains a modestly positive financial position but shows signs of equity decline and limited operational scale typical of a young micro-entity. Compliance with statutory filing requirements is satisfactory. Investors should focus due diligence on underlying profitability, cash flow stability, and business model sustainability before proceeding.

TOM KING PLANT TRAINING LIMITED - Analysis Report

Company Number: 13990736

Analysis Date: 2025-07-29 16:40 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and net current assets but a declining asset base and equity over the last year. As a micro-entity with limited financial disclosure, there is moderate risk due to limited scale, declining net assets, and modest fixed assets.

2. Key Concerns:

• Net assets declined from £35,659 in 2023 to £22,277 in 2024, indicating erosion of equity which may suggest operational losses or asset write-downs.
• Current liabilities remain relatively high compared to current assets, though net current assets are positive; this could pressure short-term liquidity if cash flows are volatile.
• The company is very young (incorporated 2022) with only one employee and limited fixed assets, implying limited operational scale and potential vulnerability to market or cash flow shocks.

3. Positive Indicators:

• The company is compliant with filing deadlines; no overdue accounts or confirmation statements, indicating sound governance and regulatory compliance.
• Positive net current assets and net assets demonstrate the company currently maintains solvency and can meet short-term obligations.
• Ownership and control are consolidated under a single director and majority shareholder, which can provide agile decision-making and clear accountability.

4. Due Diligence Notes:

• Investigate the cause of the decline in net assets and equity between 2023 and 2024, including any losses, asset impairments, or distributions.
• Review cash flow statements and management accounts to assess liquidity and working capital trends beyond balance sheet snapshots.
• Confirm the nature and sustainability of the revenue model given the SIC codes (education and equipment leasing), especially since only micro-entity accounts have been filed with limited disclosure.
• Verify absence of any contingent liabilities or off-balance sheet obligations that could impact financial stability.
• Evaluate the director’s experience and related-party transactions, given sole control and involvement.