AUTOTRUST LTD

Executive Summary

Autotrust Ltd is a small but steadily growing business with a positive working capital position and no overdue filings, supporting approval of modest credit facilities. The balance sheet and liquidity show stability, though the company’s limited capital base and short-term funding profile warrant conservative credit limits and regular monitoring of cash flow and creditor position. Continued oversight of operational performance and financial disclosures is advised to mitigate risks.

AUTOTRUST LTD - Analysis Report

Company Number: 12824603

Analysis Date: 2025-07-20 12:04 UTC

1. Credit Opinion: APPROVE with monitoring. Autotrust Ltd is a young private limited company operating in the motor vehicle maintenance and used car sales sector. The company demonstrates modest but consistent growth in net assets and working capital over the last four years. While the scale is small and profitability details are limited due to filleted accounts, the balance sheet is positive with net current assets and shareholders’ funds increasing. There is no indication of financial distress or overdue filings, and the director’s conduct appears clean. The business should be able to service modest credit facilities, but given the relatively low equity base and reliance on trade creditors, credit limits should be conservative, with regular monitoring of liquidity and creditor levels.

2. Financial Strength: The company has a small equity base of £9,819 as of August 2024, up from £2,539 in 2020, indicating gradual capital build-up. Current assets of £60,104 include stock of £45,874, debtors £5,875, and cash of £8,355. Current liabilities total £50,285, resulting in positive net current assets of £9,819. The presence of non-equity preference shares (£17,483) within current liabilities is noted, which may impact liquidity. The balance sheet shows no long-term liabilities or fixed assets disclosed. Overall, the financial position is stable but concentrated on short-term assets and liabilities with limited capital buffer.

3. Cash Flow Assessment: Cash at bank has decreased from £11,869 in 2023 to £8,355 in 2024, which alongside a reduction in stock from £58,750 to £45,874 suggests some inventory management improvement but slight pressure on liquidity. Debtors remain steady around £5,800. Current liabilities have decreased significantly from £67,521 in 2023 to £50,285 in 2024, improving working capital. Net current assets remain positive but modest. The company appears to maintain sufficient liquidity to meet short-term obligations but should be monitored for any increases in creditor days or stock holding that could strain cash flows.

4. Monitoring Points:

• Ongoing liquidity position: watch cash balances and working capital trends, especially stock and creditor levels.
• Profitability and cash generation: as filleted accounts limit visibility, any future full accounts or management accounts should be reviewed.
• Non-equity preference shares: assess terms and redemption schedules for impact on cash requirements.
• Trade creditors: monitor ageing and concentration risk to ensure supplier relationships remain stable.
• Business growth and sector risks: track sales volumes and market conditions in used car sales and vehicle maintenance, particularly given economic cycles.