Company Number: 14194757

Analysis Date: 2025-07-20 18:27 UTC

1. Credit Opinion: APPROVE
   Autobody Corrections Ltd demonstrates a stable financial position with positive net assets and net current assets, indicating adequate short-term liquidity to meet obligations. The company has consistently maintained a healthy working capital position over the last two years and shows no overdue filings or signs of financial distress. Given the micro-entity status and steady balance sheet growth, the risk of default is low, supporting a credit approval.

2. Financial Strength:
   The company’s net assets increased from £10,463 in 2023 to £11,211 in 2024, reflecting modest growth in equity. Current assets rose slightly to £18,285 while current liabilities increased to £6,074, resulting in net current assets of £12,211—an improvement from the previous year. The balance sheet is simple and conservative, with no long-term liabilities reported, indicating limited leverage and a strong equity base relative to total liabilities.

3. Cash Flow Assessment:
   The company maintains a positive working capital buffer (net current assets) exceeding £12k, which is sufficient for a micro-sized business with two employees. There is no indication of cash flow stress or liquidity risk. The absence of audit requirements and micro-entity reporting suggests a straightforward cash flow profile, likely supported by ongoing operational receipts. However, detailed cash flow statements are unavailable, so monitoring actual cash conversion cycles will be important.

4. Monitoring Points:

• Maintain positive net current assets and monitor any sharp increases in liabilities or reduction in cash reserves.
• Watch for any delays in statutory filings or changes in director composition that could signal governance issues.
• Track revenue and profit trends as soon as profit and loss accounts become available to assess operational performance.
• Monitor economic conditions affecting the vehicle repair sector that could impact demand or margins.