TPMS GROUP LIMITED

Executive Summary

TPMS GROUP LIMITED shows moderate financial health with improved net assets and working capital turning positive in the latest year. The company’s small size and limited capital require cautious credit exposure, but current liquidity appears sufficient to meet short-term obligations. Conditional credit approval is recommended with ongoing monitoring of cash flow and receivables management.

TPMS GROUP LIMITED - Analysis Report

Company Number: 13034792

Analysis Date: 2025-07-29 13:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   TPMS GROUP LIMITED is a micro-entity with a relatively short trading history since incorporation in late 2020. The company shows a modest but improving net asset position and positive working capital in the latest year. However, current assets have significantly decreased year-on-year while current liabilities have been reduced, resulting in improved net current assets from negative to positive £6,231. The company operates in business support and temporary employment services, sectors sensitive to economic cycles. Management appears stable with experienced directors, but limited financial scale and thin capital base (£12,306 equity) constrain financial flexibility. The company can meet short-term liabilities but should be monitored for cash flow consistency. Credit approval is recommended with conditions such as modest facility limits and regular financial reviews.

2. Financial Strength:

• Net Assets increased from £10,426 (2022) to £12,306 (2023), reflecting small retained earnings or capital injections.
• Fixed Assets slightly reduced to £18,537 but represent a small proportion of total assets.
• Current Assets dropped sharply from £17,169 to £5,570, indicating reduced liquidity or collection issues.
• Current Liabilities decreased substantially from £27,928 to £11,801, improving working capital to positive £6,231 from a negative £10,759.
• Overall, the balance sheet shows improvement in solvency and short-term liquidity, but asset base remains small with limited buffer against shocks.

3. Cash Flow Assessment:

• The working capital turnaround into positive territory is encouraging and suggests better short-term liquidity management.
• The sharp fall in current assets warrants investigation—whether due to lower receivables, inventory, or cash holdings.
• The company’s micro status and low capital base indicate limited internal cash generation capacity; external financing or timely customer payments are critical.
• Average employees number is stable at 3, consistent with a small operation.
• No audit reported, so limited visibility on cash flow statement, but balance sheet trends imply cautious optimism on liquidity.

4. Monitoring Points:

• Monitor accounts receivable collection and cash conversion cycles closely to avoid liquidity squeeze.
• Watch for any significant increase in current liabilities or delays in payments to suppliers.
• Review management’s ability to maintain or grow net assets and working capital in future filings.
• Assess impact of sector conditions on revenue stability, given reliance on temporary employment activities.
• Confirm no director changes or adverse events impacting governance or operational continuity.