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.