TRIBAL TALENT LTD

Executive Summary

Tribal Talent Ltd exhibits a high risk profile primarily due to deteriorating solvency and liquidity positions as evidenced by negative net assets and significant working capital deficits in the latest accounts. Despite compliance with filing requirements and stable governance, the company’s operational sustainability is under pressure. Further detailed financial and operational due diligence is recommended to evaluate recovery prospects and risk mitigation.

TRIBAL TALENT LTD - Analysis Report

Company Number: 12529818

Analysis Date: 2025-07-20 12:49 UTC

1. Risk Rating: HIGH
   Justification: The company has significant negative net assets (£-9,695 as of 2024) and a large increase in current liabilities compared to current assets, indicating potential solvency and liquidity issues.

2. Key Concerns:

   • Solvency Risk: Net liabilities of approximately £9,695 as of 31 August 2024, a sharp deterioration from a small positive net asset position in the prior year, suggest the company may struggle to meet its long-term obligations.
   • Liquidity Concerns: Current assets dropped drastically from £7,920 in 2023 to only £24 in 2024, while current liabilities increased to £9,902, resulting in significant negative working capital (£-9,878). This points to acute cash flow stress.
   • Operational Stability: The company operates in a competitive sector (temporary employment agencies) with only two employees on average, and its financial position suggests potential ongoing operational challenges. The lack of profit and worsening balance sheet could threaten sustainability.

3. Positive Indicators:

   • The company remains active with no overdue filings and timely submission of accounts and confirmation statements, indicating compliance with statutory requirements.
   • Directors have remained consistent, and there are no disqualifications or governance red flags noted.
   • The company is a micro-entity, which may reduce administrative burdens and costs.

4. Due Diligence Notes:

   • Investigate causes of the sharp decline in current assets and increase in current liabilities—e.g., specific creditor obligations, unpaid expenses, or loans.
   • Review cash flow and management accounts to assess how the company intends to address its liquidity shortfall.
   • Examine any contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.
   • Assess the business model viability and client contracts to understand revenue generation and operational prospects.
   • Confirm related party transactions or director loans that may impact financial position.