TOUCAN BEAK CONSULTANCY LTD

Executive Summary

Toucan Beak Consultancy Ltd exhibits critical liquidity and solvency weaknesses, with negative net assets and insufficient cash to cover current liabilities. The company’s financial trajectory is declining, showing no evident capacity to service debt or withstand economic stress. Credit facilities are not recommended without significant improvement or external support.

TOUCAN BEAK CONSULTANCY LTD - Analysis Report

Company Number: 13607582

Analysis Date: 2025-07-29 13:34 UTC

1. Credit Opinion: DECLINE. Toucan Beak Consultancy Ltd demonstrates significant financial distress, reflected by persistent net liabilities and negative working capital in the latest fiscal year. The company lacks sufficient current assets and cash to meet short-term liabilities, indicating a poor liquidity position and a high risk of default. The absence of profit and continued erosion of shareholder funds further undermine its ability to service debt or sustain credit facilities.

2. Financial Strength: The balance sheet reveals a deteriorating financial position. Net assets have declined from a positive £15 in 2022 to a negative £3,569 in 2023. Current liabilities (£3,571) substantially exceed current assets (£2), resulting in a negative net current asset position of £-3,569. Shareholders’ funds have similarly fallen into a deficit, indicating accumulated losses and no retained earnings. The company holds minimal fixed assets, reflecting limited collateral value for secured lending.

3. Cash Flow Assessment: Liquidity is critically constrained, with closing cash balances of only £2 as of September 2023. The company’s inability to generate or maintain cash reserves suggests inadequate operational cash flow or reliance on external funding. The working capital deficiency signals potential difficulties in meeting short-term obligations and operational expenses without additional capital injection.

4. Monitoring Points:

• Track quarterly cash flow statements and bank balances for signs of improvement or further deterioration.
• Monitor any material changes in current liabilities or receipt of new financing.
• Watch for timely filing of accounts and confirmation statements to assess management discipline.
• Observe market conditions and industry risks related to real estate agencies impacting business viability.
• Review any strategic plans or restructuring initiatives undertaken by management to restore financial health.