TOM TYPES KEYS LTD

Executive Summary

Tom Types Keys Ltd, a micro entity active since 2021, is currently in a financially precarious position with negative net assets and net current liabilities as of February 2024. While it maintains regulatory compliance and operates in specialized sectors, significant solvency and liquidity risks exist that warrant careful investigation before investment consideration.

TOM TYPES KEYS LTD - Analysis Report

Company Number: 13211491

Analysis Date: 2025-07-29 14:27 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with negative net assets and net current liabilities in the latest financial year, indicating inability to meet short-term obligations without additional funding.

2. Key Concerns:

• Negative net assets of £7,205 and net current liabilities of £1,205 as of 29 February 2024, a deterioration from previous years, signal financial distress.
• Consistent negative retained earnings and shareholders’ funds indicate accumulated losses and no equity buffer.
• Very small scale of operations (micro entity with only 1 employee) and minimal share capital (£1) raise questions on financial resilience and operational scalability.

3. Positive Indicators:

• The company is compliant with filing requirements; no overdue accounts or confirmation statements, suggesting regulatory compliance and governance discipline.
• The director is the sole occupant and appears to maintain control and oversight.
• Industry classification in artistic creation and advertising agencies may offer niche market opportunities if operational challenges are addressed.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and increase in current liabilities during the last year—whether due to increased borrowing, accrued expenses, or other liabilities.
• Review cash flow statements and bank balances to assess liquidity beyond balance sheet figures.
• Understand the business model and revenue generation given the micro scale and sector to evaluate operational sustainability.
• Assess any related party transactions or contingent liabilities not disclosed.
• Confirm the director’s plans for financial turnaround or capital injection to restore solvency.