TOOL TIME BUILD LTD

Executive Summary

Tool Time Build Ltd appears financially stable with positive net current assets and growing equity, supported by consistent regulatory compliance. However, the notable increase in current liabilities and declining fixed assets should be examined further to confirm liquidity and operational sustainability. Overall, the company presents a low-risk profile for investors at this stage, subject to continued monitoring of its working capital and asset management.

TOOL TIME BUILD LTD - Analysis Report

Company Number: 13099944

Analysis Date: 2025-07-20 16:28 UTC

1. Risk Rating: LOW

Justification: Tool Time Build Ltd demonstrates a positive net current asset position and a steadily improving shareholders’ funds balance over recent years. No overdue filings or compliance issues are indicated. The company is small in scale but appears solvent with a manageable level of liabilities relative to assets.

2. Key Concerns:

• Rising Current Liabilities: Current liabilities have nearly tripled from £107,802 in 2023 to £318,880 in 2024, which warrants monitoring to ensure these obligations remain manageable.
• Decreasing Fixed Assets: Fixed assets have declined steadily from £12,500 in 2020 to £4,369 in 2024, potentially indicating asset disposals or underinvestment in long-term operational capacity.
• Limited Scale and Resources: As a micro-entity with only 2 employees, the company may face operational risks related to limited human resources and capacity for growth.

3. Positive Indicators:

• Positive Net Current Assets: The company’s net current assets increased significantly from £47,347 in 2023 to £82,088 in 2024, suggesting improved short-term liquidity.
• Increasing Shareholders’ Funds: Equity has grown from £21,383 in 2020 to £86,457 in 2024, reflecting retained earnings or capital injection strengthening the company’s financial base.
• Compliance and Governance: No overdue accounts or confirmation statements are reported, indicating good regulatory compliance and governance practices.
• Stable Management: The same directors and secretary have been in place since incorporation, suggesting stable company leadership.

4. Due Diligence Notes:

• Review the nature and cause of the sharp increase in current liabilities in 2024 to assess liquidity risk and creditor terms.
• Investigate the reasons behind the reduction in fixed assets to determine if this impacts operational capabilities or reflects strategic asset management.
• Assess cash flow statements (if available) for underlying cash generation and working capital management.
• Confirm ongoing contract pipeline and revenue visibility given the company’s small scale and workforce.
• Validate the ownership and control structure with Mrs. Carolyn Thomas holding 25-50% shares and voting rights, to understand decision-making dynamics.