APOLLO CABS LTD

Executive Summary

Apollo Cabs Ltd is an early-stage taxi operation business with a weak financial position characterized by negative net assets and working capital deficits. Current liquidity is insufficient to support debt repayment or credit extension safely. Credit approval is declined at this time pending improved financial results and strengthened cash flow. Continuous monitoring of liquidity and profitability metrics is essential going forward.

APOLLO CABS LTD - Analysis Report

Company Number: 14266016

Analysis Date: 2025-07-29 12:51 UTC

1. Credit Opinion: DECLINE
   Apollo Cabs Ltd is a newly incorporated company (since August 2022) operating in the taxi operation sector (SIC 49320). The latest financials (year ending Aug 2023) show negative net assets of £370 and shareholders’ funds at -£470, indicating the company is currently insolvent on a balance sheet basis. Net current liabilities of £370 further suggest liquidity strain, with cash on hand at a minimal £57. The company has director loans of £127 and bank overdrafts of £300, which are current liabilities due within one year. There is no indication of profitability or positive cash flow generation yet, and no employees other than the director. Given these factors, the company lacks financial strength and cash flow to comfortably service debt or credit facilities at this stage. Credit approval is not recommended until the company demonstrates improved financial performance and stronger liquidity.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Shareholders’ funds are negative, reflecting accumulated losses since inception. The minimal fixed assets (not disclosed but presumably low given the business type and no mention) and negligible cash position create a fragile asset base. Current liabilities exceed current assets, indicating working capital deficits. The reliance on director loans and overdrafts raises concerns about the sustainability of funding. The company’s small size and early stage of operations increase risk, as it has yet to establish profitability or build equity.

3. Cash Flow Assessment:
   With only £57 in cash and net current liabilities of £370, liquidity is very constrained. The company currently depends on short-term borrowings (bank overdraft and director loans) to meet obligations. There is no evidence of positive operating cash flow or working capital improvement. The absence of employees besides the director suggests limited operational scale. Without demonstrated cash generation from operations, the company faces risk of cash flow shortfalls that would impair its ability to meet creditor demands or repay loans.

4. Monitoring Points:

• Monthly cash flow and working capital trends to detect improvement or deterioration.
• Profit and loss performance over the next reporting period to assess trajectory towards profitability.
• Changes in director loans or overdraft usage as indicators of funding pressure.
• Any new financing arrangements or equity injections that strengthen the balance sheet.
• Compliance with filing deadlines and governance to ensure no regulatory risks.