AB UK MOBILE REPAIR LTD

Executive Summary

AB UK MOBILE REPAIR LTD is a start-up with limited financial history and a tight liquidity position evidenced by negative working capital. While current cash covers most short-term liabilities, the company should be granted credit cautiously with close monitoring of working capital management. Improvement in trading performance and balance sheet strength will be critical for future credit consideration.

AB UK MOBILE REPAIR LTD - Analysis Report

Company Number: 14562990

Analysis Date: 2025-07-29 18:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AB UK MOBILE REPAIR LTD is a very young private limited company incorporated at the end of 2022, operating in the repair of communication equipment sector. The company shows modest net assets (£366) with a negative working capital position (net current assets of -£7,654). The current liabilities (£45,616) exceed current assets (mainly cash of £37,962), indicating a tight liquidity position. However, there are no overdue filings, and the director appears singular and fully in control. Given the early stage and limited financial history, credit facilities could be approved conditionally with strict monitoring and modest exposure until further trading history and stronger financials develop.

2. Financial Strength:

• Fixed assets are minimal (£8,020 net) and consist of tangible assets likely used in operations.
• The company’s shareholders’ funds are nominal (£366), reflecting its start-up phase and limited retained earnings.
• Negative net current assets reflect a working capital deficit, primarily driven by trade creditors (£45,486) exceeding cash resources.
• No bank debt or long-term liabilities reported, which limits leverage risk but also indicates no established credit lines yet.

3. Cash Flow Assessment:

• Cash balance of £37,962 provides some short-term liquidity, but current liabilities of £45,616 suggest potential shortfalls for immediate obligations.
• Absence of detailed profit and loss data limits assessment of operational cash flow generation, but the negative working capital position implies reliance on timely receivables collection or additional funding to meet payables.
• Single employee operation indicates low fixed overheads, which may help conserve cash but also limits capacity for rapid growth or handling larger contracts.

4. Monitoring Points:

• Monitor timely settlement of trade creditors and management of working capital to avoid liquidity crises.
• Review future filed accounts for evidence of revenue growth, profitability, and improvements in net current assets.
• Track any expansion in the workforce or fixed assets that could indicate scaling operations and increased financial commitments.
• Watch for any director changes or indications of external financing to better understand capital structure evolution.