APPROVED CABS LIMITED

Executive Summary

Approved Cabs Limited is a newly established taxi operation with no trading history and a fragile financial position characterized by negative net assets and working capital. Its current inability to cover liabilities or demonstrate sustainable cash flow results in high credit risk. Continuous monitoring of operational performance and liquidity improvements is essential before reconsidering credit exposure.

APPROVED CABS LIMITED - Analysis Report

Company Number: 15614696

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

1. Credit Opinion: DECLINE
   Approved Cabs Limited currently demonstrates a weak financial position with significant net liabilities (£9,079) and negative working capital (£10,609). Being newly incorporated in April 2024, the company has no trading history or employees and has yet to generate revenue or profit. The substantial current liabilities compared to minimal assets raise concerns about its ability to meet short-term obligations. Without evidence of capital injection, operational cash flow, or tangible assets, the company’s creditworthiness is poor at this early stage. Lending or extending credit would carry high risk.

2. Financial Strength:
   The balance sheet reveals minimal fixed assets (£1,530) and almost no current assets (£36), contrasted by current liabilities of £10,645. This results in negative net current assets and shareholders’ funds. The micro-entity filing basis limits detailed disclosures, but the available data shows the company is undercapitalized and financially fragile. The absence of employees and lack of trading activity indicate the company is likely in a start-up phase without established revenue streams or reserves.

3. Cash Flow Assessment:
   Current assets are negligible with no indication of cash or receivables sufficient to cover even a fraction of short-term liabilities. Negative working capital implies liquidity risk and inability to fund day-to-day operations without external support. No historical cash flow data is available, but the financial structure suggests the company relies on shareholder funding or credit to sustain operations. Immediate cash inflows or capital injections would be needed to improve liquidity.

4. Monitoring Points:

• Track subsequent accounts for evidence of revenue generation and profitability.
• Monitor cash balances and net current asset position for liquidity improvements.
• Observe changes in shareholder funds indicating capital injection or debt conversion.
• Watch for director or related party loans and their terms, which may affect credit risk.
• Review any overdue filings or changes in company status signaling financial distress.