TQ1 MANAGEMENT LTD

Executive Summary

TQ1 MANAGEMENT LTD’s latest accounts reveal a significant decline in financial health, with net liabilities and working capital deficits raising liquidity and solvency concerns. The company’s micro-entity scale and worsening balance sheet indicate elevated credit risk, leading to a recommendation to decline credit facilities at this stage. Close monitoring of cash flow and capital support is critical if reconsidered in future.

TQ1 MANAGEMENT LTD - Analysis Report

Company Number: 13628838

Analysis Date: 2025-07-29 12:43 UTC

1. Credit Opinion: DECLINE
   TQ1 MANAGEMENT LTD exhibits a concerning deterioration in financial health over the latest reporting period. The company moved from a modest net asset positive position (£736) in 2023 to a net liability position (-£131) in 2024. This erosion of equity indicates financial stress and potential inability to meet obligations without additional capital injection. Current liabilities have increased, and net current assets have swung from positive (£32,655) to significantly negative (-£27,400), signaling liquidity challenges. Given the micro-entity size and limited asset base, the risk of default on credit facilities is elevated. Without evidence of strong cash inflows or capital support, credit approval is not advisable.

2. Financial Strength:
   The balance sheet shows a decline in fixed assets from £33,391 to £27,269 and a sharp increase in current liabilities from £34,179 to £40,048. Current assets increased but not sufficiently to offset liabilities, resulting in negative net working capital. Net assets have turned negative, indicating that total liabilities exceed total assets. This weak financial position raises concerns about solvency and the company’s buffer to absorb operating shocks. The company remains a micro-entity with limited scale and resources, which constrains financial flexibility.

3. Cash Flow Assessment:
   Negative net current assets suggest working capital deficits, likely forcing reliance on external funding to meet short-term obligations. The increase in current liabilities combined with the low level of current assets points to tight liquidity. The reduction in employee numbers from 4 to 3 may indicate cost management efforts but is unlikely sufficient to resolve cash flow pressures. Without detailed cash flow statements, the liquidity risk is inferred from the balance sheet deterioration, which is unfavorable.

4. Monitoring Points:

• Monitor subsequent filings to confirm if liquidity and net asset position improve or deteriorate further.
• Watch for late payment trends or supplier disputes indicating cash flow stress.
• Assess any capital injections or director loans that may temporarily shore up the balance sheet.
• Review trading performance and cash flow forecasts for signs of turnaround or continued decline.
• Track management actions to reduce liabilities or increase current assets.