Company Number: 13144831

Analysis Date: 2025-07-20 15:38 UTC

1. Credit Opinion: DECLINE
   TYKOM LIMITED exhibits a deteriorating financial position with negative net assets (£-251) and net current liabilities (£-251) as of January 2024, compared to positive net assets (£12) and net current assets (£243) the prior year. The company’s cash reserves have depleted significantly to £64, insufficient to cover short-term liabilities of £315. The absence of employees and reliance on the single director raises concerns regarding operational capacity and management bandwidth. These indicators suggest a high risk of default and limited ability to service new or existing debt, leading to a recommendation to decline credit at this stage.

2. Financial Strength:
   The balance sheet shows a rapid decline over the last year with net liabilities replacing net assets. The company holds minimal fixed assets and the entire current position is cash-based, which has been depleted. The increase in short-term creditors from zero to £315 and the removal of long-term creditors (£231 in prior year) signals a shift in creditor profile but a worsening liquidity position. Shareholders’ funds are negative, reflecting accumulated losses in the profit and loss account (£-252). Overall, the financial strength is weak with no equity buffer.

3. Cash Flow Assessment:
   With cash down to £64 and current liabilities at £315, working capital is negative by £251. This suggests ongoing cash flow stress and potential difficulties meeting immediate obligations. The company’s accounts do not disclose trading profit/loss, but the movement in balance sheet items indicates cash burn. The lack of employees and minimal capital suggests cash inflows are limited, possibly from the director or other sources rather than operating revenues.

4. Monitoring Points:

• Cash position and liquidity ratios on future filings
• Movement in current liabilities, particularly trade creditors and accruals
• Profit and loss account developments to assess trading viability
• Director’s financial support or external financing arrangements
• Any changes in business operations or employee hiring
• Timely filing of accounts and confirmation statements to monitor compliance