TRAVEL DESIGNED LIMITED

Executive Summary

Travel Designed Limited operates a small-scale travel agency business with modest positive net assets but persistent working capital deficits, indicating potential liquidity challenges. The company maintains good regulatory compliance and a stable management structure, though reliance on director loans and limited equity raise concerns. Further investigation into cash flows and operational resilience is recommended to fully assess financial stability.

TRAVEL DESIGNED LIMITED - Analysis Report

Company Number: 13224698

Analysis Date: 2025-07-29 14:34 UTC

1. Risk Rating: MEDIUM
   Travel Designed Limited exhibits some modest financial stability but also presents several concerns that moderate its risk profile. The company has maintained positive net assets over its reporting periods, yet it consistently shows net current liabilities and a working capital deficit. The small scale of operations and limited equity base increase sensitivity to cash flow fluctuations and creditor demands.

2. Key Concerns:

• Working Capital Deficit: The company reported net current liabilities of £212 at 30 June 2024, a slight improvement from £1,051 in prior years but still indicating current liabilities exceed current assets. This suggests potential short-term liquidity pressure to meet obligations as they fall due.
• Director Loan as Creditor: The company owes the director £2,756 (down from £12,870), which is interest-free and repayable on demand. This related party balance may pose a risk if the director demands repayment unexpectedly or if the company relies heavily on this funding for liquidity.
• Limited Financial Scale and Equity: With share capital at £1 and shareholders’ funds around £1,172, the company has a minimal capital buffer. This leaves little room for absorbing operational or market shocks and limits borrowing capacity.

3. Positive Indicators:

• Consistent Net Assets: The company has maintained positive net assets (albeit modest) over the last three financial years, suggesting ongoing solvency at a balance sheet level.
• No Overdue Filings: Accounts and confirmation statement filings are up to date, indicating regulatory compliance and timely administrative management.
• Stable Single Director and Operations: The director has been in place since incorporation, and the company operates in a defined niche (travel agency activities), likely allowing focused management and operational consistency.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan, including the likelihood and timing of repayment demands and any informal arrangements supporting company liquidity.
• Review cash flow statements and management accounts where available to assess operating cash generation and short-term liquidity beyond balance sheet snapshots.
• Understand the company's revenue trends, client base stability, and market positioning given the travel industry’s volatility, especially post-pandemic.
• Confirm the absence of contingent liabilities or off-balance sheet obligations that may impact financial health.
• Verify that the company maintains adequate insurance and compliance with industry regulations relevant to travel agencies.