APCYW LTD

Executive Summary

APCYW LTD shows a modest but improving financial position with net assets doubling in its second year. However, rising current liabilities and reduced current assets introduce liquidity concerns. Credit approval is conditional on further clarity of liabilities and ongoing monitoring of cash flow and profitability.

APCYW LTD - Analysis Report

Company Number: 13880207

Analysis Date: 2025-07-29 14:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   APCYW LTD is a micro-entity operating in freight transport and vehicle maintenance, with an active status and a single director who is also the sole shareholder. The company shows growth in net assets from £5,999 (2023) to £13,802 (2024), indicating improving financial strength. However, the current liabilities figure for 2024 is presented as a negative (£-8,185), which appears to be a formatting error—assuming this means creditors increased to £8,185 from £2,511 in 2023, this raises a concern about rising short-term obligations. The company is very small, employs only one person, and has limited financial disclosure (no profit & loss statement filed). The director’s occupation as an HGV driver suggests operational involvement but limited financial expertise. Given the company’s short trading history (incorporated 2022) and modest financial base, credit approval is conditional on monitoring actual cash flow and clarifying the nature of current liabilities.

2. Financial Strength:
   The balance sheet shows net assets doubling year on year (£5,999 to £13,802), which is positive. The company has no fixed assets disclosed, indicating it may be asset-light. The current assets have declined from £8,510 to £5,617, while current liabilities have increased, which reduces working capital liquidity. Shareholders’ funds mirror net assets, consistent with no external debt or long-term liabilities. Overall, the financial position is modest but stable, with no apparent gearing. The increase in net assets suggests some retained earnings or capital injection, strengthening the equity base.

3. Cash Flow Assessment:
   Cash reported in the previous year was £7,661, but cash is not separately disclosed for 2024, only total current assets of £5,617. This suggests a reduction in liquid assets or a reclassification. The net current assets of £13,802 indicate that current liabilities are being offset by current assets plus other short-term receivables or prepayments. However, the rise in current liabilities and decline in current assets warrants caution. The company’s operational cash flow is not visible, and the lack of a profit & loss account limits assessment of profitability and cash generation. Working capital appears positive but potentially tightening.

4. Monitoring Points:

• Clarify the nature and increase of current liabilities in 2024 and confirm if the negative figure is a reporting error.
• Obtain or review the profit & loss accounts or management accounts to assess profitability and cash flow trends.
• Monitor cash balances regularly to ensure liquidity is sufficient to meet obligations.
• Track turnover and debtor collection efficiency given the small scale of operations and limited financial buffer.
• Observe director’s involvement in financial management and consider requesting periodic financial updates given the small team.