TROPHY HOME IMPROVEMENTS LTD

Executive Summary

Trophy Home Improvements Ltd currently faces high financial risk due to its negative net assets and minimal cash resources, raising concerns about its short-term solvency and liquidity. While the company has shown some improvement in reducing net liabilities and remains compliant with filing obligations, its reliance on director loans and lack of operational cash flow warrant careful further investigation before any investment decisions.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

TROPHY HOME IMPROVEMENTS LTD - Analysis Report

Company Number: 13952069

Analysis Date: 2025-07-20 11:14 UTC

  1. Risk Rating: HIGH
    The company exhibits significant solvency and liquidity concerns, with persistent negative net assets and net current liabilities. Its very low cash balance relative to liabilities further raises red flags regarding its ability to meet short-term obligations.

  2. Key Concerns:

  • Negative Net Assets and Shareholders’ Funds: The company has reported net liabilities of £432 as at 31 March 2024, an improvement from prior years but still negative, indicating ongoing financial distress and erosion of capital.
  • Severe Liquidity Issues: Cash on hand is only £5 as at the latest year-end, against current liabilities of £437, implying an inability to cover immediate debts from liquid resources.
  • Dependence on Director Loans: The creditors mainly comprise loans from the director (£87 in 2024, down from £7,116 in 2023), suggesting reliance on director financing rather than operational cash flow or external funding.
  1. Positive Indicators:
  • Improvement in Financial Position: The net liabilities have reduced substantially from nearly £5,000 in 2023 to £432 in 2024, indicating some progress in managing liabilities or improving asset base.
  • Compliance with Filings: The company is up to date with accounts and confirmation statement filings, demonstrating regulatory compliance and governance discipline.
  • Active Website and Presence: The company maintains an active website, which may support operational credibility and customer engagement.
  1. Due Diligence Notes:
  • Examine Director Loans: Clarify the terms, repayment schedule, and sustainability of director loans, as these appear material to the balance sheet and ongoing liquidity.
  • Assess Operational Cash Flow: Investigate the company’s revenue streams, profitability, and cash generation capabilities since no employees and minimal assets are reported.
  • Understand Business Model and Growth Plans: Given the small scale and financial losses, review business strategy, customer base, and market positioning to evaluate viability.
  • Review Related Party Transactions: Check for any other director-related or related-party transactions that could affect financial health.
  • Confirm No Pending Liabilities: Verify if there are contingent liabilities or overdue creditor payments not reflected in accounts.


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