TWIN DESIGN BRANDING LTD

Executive Summary

Twin Design Branding Ltd is a micro-entity with very limited financial resources, showing a significant decline in current assets and net assets. The company’s weak liquidity and minimal equity base indicate a poor capacity to service debt or withstand downturns. Given these factors, credit support at this time is not advisable without substantial improvement in financial performance and capital structure.

TWIN DESIGN BRANDING LTD - Analysis Report

Company Number: 13125682

Analysis Date: 2025-07-20 12:25 UTC

1. Credit Opinion: DECLINE
   Twin Design Branding Ltd is a micro-entity with minimal net assets (£107) and a significant decline in current assets compared to the previous year (£384 vs. £4,793). The company shows very limited financial resources, negligible equity, and a sharp reduction in working capital. The absence of fixed assets and low cash equivalents suggests limited ability to service debt or absorb financial shocks. Given the weak financial position, lack of profitability data, and early stage of the business (incorporated 2021), the company currently poses a high credit risk.

2. Financial Strength:
   The balance sheet reveals very low net assets of £107 as at 31 January 2024, down from £154 the prior year, indicating minimal equity cushion. Current liabilities (£279) slightly exceed current assets (£384), resulting in a marginal positive net current asset position (£105). The company holds no fixed assets and only nominal share capital (£2). The material decline in current assets from prior year and elimination of long-term liabilities points to possible repayment or restructuring activity but does not improve financial stability.

3. Cash Flow Assessment:
   Current assets primarily consist of cash or equivalents (£384) and possibly small receivables or stock. The current liabilities of £279 are short-term obligations, resulting in a slight working capital surplus (£105). However, the sharp reduction in current assets from over £4,700 the prior year is a concern, indicating weak liquidity and limited operational cash flow buffer. With just two employees and a minimal asset base, the company’s ability to generate positive cash flow to meet ongoing obligations appears constrained.

4. Monitoring Points:

• Liquidity trends: Monitor quarterly cash and current asset positions to ensure working capital remains positive.
• Profitability and cash generation: Review future filed accounts for signs of revenue growth and net profit margins.
• Director performance and governance: Track any changes in management or signs of financial distress.
• Credit exposure: Any new borrowings or commitments should be carefully assessed given currently weak financials.
• Filing compliance: Maintain oversight on timely submission of accounts and confirmation statements to avoid regulatory penalties.