TRADERS AND MAKERS LIMITED

Executive Summary

TRADERS AND MAKERS LIMITED currently exhibits positive short-term liquidity but suffers from significant long-term debt exceeding its asset base, resulting in negative net equity. Immediate focus on debt restructuring and capital strengthening is essential to prevent insolvency and improve financial stability. The company’s short operating history and micro-entity status provide a manageable framework for corrective action.

TRADERS AND MAKERS LIMITED - Analysis Report

Company Number: 14225479

Analysis Date: 2025-07-20 16:37 UTC

Financial Health Assessment Report for TRADERS AND MAKERS LIMITED

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1. Financial Health Score: D

Explanation:
The company shows a fragile financial condition, primarily due to a significant long-term liability overshadowing its short-term asset position. While net current assets are positive, indicating some operational liquidity, the overall net asset position is deeply negative, reflecting potential solvency concerns. This results in a below-average financial health grade.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	56,868	Indicates investment in long-term assets; moderately sized for a micro entity.
Current Assets	33,765	Short-term assets potentially convertible to cash within a year; a positive sign.
Current Liabilities	13,887	Debts due within one year; relatively low compared to current assets, suggesting decent liquidity.
Net Current Assets	19,878	Positive working capital; "healthy cash flow" symptom, allowing meeting short-term obligations.
Long-Term Liabilities	98,207	Substantial debts due beyond one year; a "symptom of distress" as it exceeds total assets.
Total Assets Less Current Liabilities	76,746	Assets after covering short-term debts; looks positive but overshadowed by long-term liabilities.
Net Assets (Total Equity)	-21,461	Negative net worth; "diagnostic red flag" indicating liabilities exceed assets.
Shareholders’ Funds	-21,461	Negative equity base indicates potential insolvency risk.
Average Number of Employees	0	Micro-entity status with no employees; likely minimal operational complexity.

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3. Diagnosis

The financial "vital signs" of TRADERS AND MAKERS LIMITED reveal a worrying financial imbalance. Although the company maintains positive working capital—indicating it can currently meet short-term liabilities—the large long-term liabilities far exceed its total assets. This condition is akin to a patient with a strong pulse and breathing (short-term liquidity) but underlying organ failure (long-term solvency).

The negative net asset figure signals that the company owes more than it owns, a classic symptom of financial distress. This could threaten the company’s ability to continue as a going concern if the long-term debts are not restructured or reduced. The absence of employees suggests a lean operation or possibly a holding structure, but this does not alleviate the solvency concerns.

In summary, the company has "symptoms of distress" primarily due to high long-term liabilities, despite maintaining "healthy cash flow" in the short term.

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4. Recommendations

To improve the financial wellness and prognosis of TRADERS AND MAKERS LIMITED, the following actions are advised:

• Debt Restructuring: Engage with creditors to negotiate terms for the large long-term liabilities. Options include extending repayment periods, reducing interest rates, or partial debt forgiveness.
• Capital Injection: Consider raising additional equity capital from existing shareholders or new investors to improve net asset position and reduce reliance on debt.
• Cost Management: Maintain lean operations, especially given no employees are currently recorded, to preserve cash flow.
• Financial Monitoring: Implement regular financial reviews focusing on cash flow forecasting and debt servicing capacity to catch early signs of worsening distress.
• Strategic Review: Evaluate business model viability and consider diversification or restructuring to enhance revenue streams and asset base.
• Professional Advice: Seek guidance from financial advisors or insolvency practitioners early if debt restructuring options are limited.

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Prognosis

If the company addresses its long-term liabilities effectively, it can stabilize its financial health and move towards a positive net asset position. Failure to act may lead to worsening solvency issues, risking insolvency or forced liquidation. The current "healthy cash flow" provides a window of opportunity for corrective measures.

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