Financial Health Assessment: TTMP LTD

1. Financial Health Score: F

Explanation: This company is in critical condition, displaying multiple symptoms of severe financial distress. The appointment of a Receiver Manager on at least one charge, combined with technical insolvency, negligible cash reserves, and the mass resignation of all directors, indicates a business that has effectively lost its heartbeat. While there are faint signs of improvement in the balance sheet deficit, the overall prognosis is grave without significant intervention.

2. Key Vital Signs

3. Symptoms Analysis

🔴 Symptom 1: Receiver Manager Appointment – The Most Alarming Sign

The company status confirms a Receiver Manager has been appointed on at least one charge. In medical terms, this is akin to a patient being placed under the care of a specialist because the primary organs are failing. A receiver is typically appointed by a secured creditor (likely the bank) when loan covenants are breached or payments are missed. This means: - The company has lost control of certain assets to a secured creditor - The bank (or lender) has determined that their security is at risk - The company's ability to operate independently is severely compromised

🔴 Symptom 2: Technical Insolvency with Chronic Negative Equity

The company has been insolvent since at least 2018, with net assets never recovering to positive territory during this period:

While the trajectory has improved from the nadir of 2021, this is analogous to a chronic condition that has stabilised slightly but remains fundamentally life-threatening. The company has operated with negative equity for six consecutive years.

🔴 Symptom 3: Cash at Near-Zero Levels

With only £330 in the bank, this company has virtually no pulse in terms of liquidity. For context: - This is insufficient to pay even the smallest trade creditor - It represents 0.002% of current liabilities - The cash position has deteriorated from over £1M in 2016 to near-zero - The company is entirely dependent on creditor forbearance and external funding to continue operating

🔴 Symptom 4: Mass Director Resignations

All four directors resigned in late 2025: - David Daniel REGAN – Resigned September 2025 - Daniel Leonard REGAN – Resigned September 2025 - Shaun Rowland PRIDMORE – Resigned November 2025 - Richard Anthony TAPPENDEN – Resigned November 2025

This is the corporate equivalent of all senior physicians leaving the ward. When directors resign en masse, it typically signals: - Loss of confidence in the company's ability to survive - Desire to avoid personal liability for wrongful trading - Potential awareness of imminent insolvency proceedings

🟡 Symptom 5: Asset Concentration Risk

The balance sheet is dominated by a single asset: - Work in Progress: £16,074,028 (98.6% of total assets) - This includes £2,218,523 of capitalised interest – meaning over £2M of the "asset" value is actually financing costs rolled into the development

This is like having all vital functions dependent on a single organ. If the development project fails to sell at the expected value, the entire business collapses. The net realisable value of this stock is critical and uncertain.

🟡 Symptom 6: Overdue Accounts

The accounts are overdue as of the data date. This suggests administrative difficulties and potential governance failures, which often accompany companies in severe distress.

4. Diagnosis

Primary Diagnosis: Severe Financial Distress with Imminent Insolvency Risk

TTMP LTD is a construction development company in critical financial health. The business model appears to be a single-project development company that has borrowed heavily (primarily from banks and related parties) to fund a commercial construction project. The company's entire future rests on the successful completion and profitable sale of this single development.

The Going Concern Risk: The directors' going concern note states they believe creditors will continue to support the company until development profits are realised. However, this assertion is fundamentally undermined by: 1. The appointment of a Receiver Manager 2. The resignation of all directors 3. The negligible cash position 4. The overdue filing of accounts

Debt Structure Analysis:

The bank's £11.8M secured debt represents 70% of total liabilities and has first claim over all assets. The presence of a Receiver Manager strongly suggests the bank has already lost patience.

Deferred Tax Asset: The £224,421 deferred tax asset (included in debtors) represents potential tax relief on future profits. Given the company's insolvency, the recoverability of this asset is highly questionable – you need profits to utilise tax losses.

5. Prognosis

Short-term (0-6 months): POOR - Without directors, the company cannot make strategic decisions - The Receiver Manager controls key assets - Cash is insufficient for any operational activity - Accounts are overdue, risking penalties and potential strike-off

Medium-term (6-18 months): POOR TO TERMINAL - The most likely outcome is formal insolvency – either administration or liquidation - If the development project is near completion and marketable, there may be value to realise - The bank's secured position means they will determine the outcome - Unsecured creditors are likely to face significant shortfalls

Key Uncertainty: The development property (work in progress) is the only hope for recovery. If the property can be sold for more than the £16M+ owed to creditors, there may be a path to survival. However: - Capitalised interest of £2.2M inflates the development cost - The construction market faces significant headwinds - The company lacks the cash to complete the development if further works are needed

6. Recommendations

For Creditors:

1. Secured Creditors (Bank): Engage with the Receiver Manager to understand the development's completion status and likely realisation value. Consider whether supporting completion would yield a better return than forced sale.
2. Unsecured Creditors: Assess the likelihood of recovery and consider whether to petition for winding up if the company is unable to pay debts.
3. Trade Creditors: Cease extending credit; demand payment upfront for any further supplies.

For Any Remaining Stakeholders:

1. Urgent: Appoint new directors who can engage with the Receiver Manager and represent any remaining shareholder interests
2. File overdue accounts immediately to avoid Companies House penalties and potential strike-off
3. Seek independent insolvency advice to understand options – administration may provide a better structured outcome than receivership alone
4. Assess development viability: Commission an independent valuation of the work in progress to determine whether completion and sale is feasible
5. Negotiate with the secured lender: Explore whether the bank would support completion of the development, as this likely maximises recovery for all parties

For Potential Investors:

• Extreme caution advised – any investment would be highly speculative
• The equity is deeply underwater (£-576,750)
• Control effectively rests with the secured creditor via the Receiver Manager
• Any new funding would likely rank behind the £11.8M secured debt

Risk Indicators Summary