CompaniesInTheUK

TONNAU SURF LIMITED

Company number 10824801 ·

Active

This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.

Investment Risk Analysis: Tonnau Surf Limited

1. Risk Rating: HIGH

The company presents significant solvency concerns having operated with negative net assets in 7 of its 8 years of existence. The most recent filing shows a material deterioration in the balance sheet position, with net liabilities widening by approximately 32% year-on-year (from £-34,303 to £-45,410). Critically, the complete elimination of employees (from 3 to NIL) raises serious questions about ongoing operational viability.

2. Key Concerns

A. Persistent and Deepening Insolvency The company has been technically insolvent for nearly its entire existence. Net assets have deteriorated from £-34,303 (2024) to £-45,410 (2025), representing an additional £11,107 erosion of equity. Total liabilities of approximately £170,178 exceed total assets of £124,768 by a substantial margin. The share capital stands at only £1, meaning the accumulated losses are being funded entirely through creditor balances—likely director loans.

B. Collapse in Working Capital Net current assets fell from £42,663 (2024) to £18,818 (2025), a 56% decline in a single year. While the company remains liquid on a short-term basis (current assets exceed current liabilities), the trajectory is concerning. Current assets dropped by £31,773 while current liabilities only reduced by £7,928, indicating the business is consuming cash faster than it is reducing short-term obligations.

C. Zero Employees The average number of employees during FY2025 was NIL, down from 3 in the prior year. For a retail business operating a physical surf shop and online store, this is a significant red flag. It suggests either: (i) the business has ceased active trading operations, (ii) the directors are running the business without payroll (possibly drawing income through other means), or (iii) the operational model has fundamentally changed. This warrants urgent clarification.

3. Positive Indicators

  • Filing Compliance: Accounts and confirmation statements are filed on time with no overdue items, suggesting the directors are maintaining basic regulatory obligations.

  • Positive Working Capital: Despite negative net assets, the company has £18,818 in net current assets, meaning it can meet short-term obligations as they fall due. Both current and long-term creditors reduced year-on-year.

  • Business Longevity: The company has survived 8 years despite persistent negative equity, which suggests the directors are committed and creditors (likely including the directors themselves) are supportive.

  • Operational Website: The website (tonnausurf.com) appears active, advertising retail operations with free UK delivery.

  • Liability Reduction: Total liabilities decreased from £190,910 (2024: £113,280 current + £77,630 long-term) to £170,178 (2025: £105,352 current + £64,826 long-term), a reduction of approximately £20,732.

4. Due Diligence Notes

Item Investigation Required
Director Loans The long-term creditors (£64,826) likely include director loans. Understanding the terms, repayment expectations, and whether directors intend to continue funding the business is essential. If these are repayable on demand, liquidity risk increases significantly.
Employee Status Clarification is needed on whether the business is still actively trading. If operations have ceased or are minimal, the asset valuations (particularly stock within current assets) may be overstated.
Going Concern Basis The accounts contain no explicit going concern statement. Given persistent negative equity, an assessment of whether the company can continue as a going concern is critical. The directors have not provided any narrative on this point.
Asset Composition Current assets of £124,170 for a retail business likely include significant stock. The realisability of this stock at book value should be questioned, particularly if the business is not actively trading.
Related Party Transactions Given the PSC structure (Benjamin Robbins controls >75% through multiple mechanisms including as trustee and member of a firm), related party dealings should be thoroughly examined.
Trading Performance Micro-entity accounts provide no profit & loss detail. Turnover, gross margin, and operating costs cannot be assessed. Obtaining management accounts would be essential for any investment decision.
Creditor Ageing Understanding whether current creditors are trade payables, HMRC liabilities, or director loans would significantly alter the risk assessment.
PSC Anomalies The PSC register shows duplicate entries for Benjamin Robbins with different control descriptions, plus a generic "persons with significant control statement" entry. This may indicate administrative errors or unresolved PSC declarations.

Perspective: Investment Risk Assessor · Model: glm-5.1 · Generated 28 July 2026