TOTAL AUTOMATION LTD

Executive Summary

Total Automation Ltd is a start-up micro-entity with weak financial footing reflected in a negative working capital position and minimal equity. While the company is compliant with filing and has stable ownership, its limited assets and liquidity constraints pose a risk to short-term solvency. Credit approval should be conditional on close monitoring of cash flows, capital support, and operational progress.

TOTAL AUTOMATION LTD - Analysis Report

Company Number: 15101740

Analysis Date: 2025-07-20 11:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Total Automation Ltd is a newly incorporated micro-entity with limited financial history and minimal net assets (£338). The balance sheet reveals a negative working capital position (net current assets: -£11,850), indicating current liabilities exceed current assets by a significant margin. This weak liquidity position raises concerns about the company’s ability to meet short-term obligations without additional funding or capital injections. However, the company is active, has filed accounts on time, and is under control of directors with apparently clear ownership and no adverse conduct records. The business operates in a specialized industrial machinery installation sector, which can be stable if contracts are secured.

2. Financial Strength: The company’s financial strength is currently very weak. Fixed assets are low at £12,188, and current assets total only £13,947 against current liabilities of £25,797. This means the company is dependent on external financing or shareholder funds to cover immediate debts. Net assets stand at a nominal £338, reflecting minimal equity base. Given the company is only one year old, this position may be transitional, but it is vulnerable without rapid improvement in profitability or working capital management.

3. Cash Flow Assessment: The negative net current assets suggest a liquidity strain. The single employee and micro classification imply low operational scale so far. No cash flow statement was provided, but the extent of current liabilities relative to liquid assets suggests cash flow is tight or potentially negative. The company’s ability to generate positive operating cash flow or secure short-term financing will be critical to avoid payment delays or default. Close scrutiny of debtor collection and creditor payment terms is advised.

4. Monitoring Points:

• Working capital trends and improvements in liquidity ratios.
• Timely payment record to suppliers and creditors.
• Profitability development in subsequent reporting periods.
• Any capital injections or shareholder loans to support liquidity.
• Contract wins or revenue growth in the industrial machinery installation sector.
• Compliance with filing deadlines and director changes or PSC updates.