Company Number: 13498987

Analysis Date: 2025-07-29 18:48 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   TOTTA COMPOSITE ENGINEERING LTD shows limited financial strength as a micro-entity with a very modest asset base and negative working capital. The company remains operational and has improved net assets slightly in the latest year, but current liabilities exceed current assets by £1,742, indicating liquidity constraints. Given the small size and early stage of the business (incorporated in 2021), credit facilities could be considered on a conditional basis, with close monitoring and possibly secured or short-term lending only.

2. Financial Strength:
   The balance sheet reflects a micro company with net assets of only £100 in 2024, up from a net liability position of £1,028 in previous years. Fixed assets are minimal (£1,842), indicating little capital investment in long-term assets. The company has consistently maintained negative net current assets, reflecting a working capital deficiency. Shareholders’ funds are marginal, wholly owned by the director, Mr. Tamas Toth, suggesting limited external equity support. The improvement from negative to marginally positive net assets is a positive sign but remains fragile.

3. Cash Flow Assessment:
   Current liabilities (£6,803) outstrip current assets (£5,061), resulting in a working capital deficit of £1,742 as at July 2024. This indicates potential liquidity pressure and a risk of short-term cash flow difficulties. The company employs one person, which limits fixed overheads, but the absence of detailed profit and loss data restricts full cash flow visibility. The micro-entity exemption and unaudited accounts mean cash flow statements are not available, so reliance is on balance sheet liquidity indicators which suggest tight cash flow management is essential.

4. Monitoring Points:

• Working capital trends: Watch for continued improvement or deterioration in current asset coverage of liabilities.
• Profitability disclosure: Request management accounts or P&L to assess ongoing earnings and cash generation.
• Director funding or external financing: Monitor any injections of capital or credit support from the principal owner or third parties.
• Timely filing of accounts and confirmation statements: Maintain compliance to avoid regulatory or reputational issues.
• Business development progress: Given the niche SIC codes related to ship and boat building, assess market conditions and order book stability for future revenue assurance.