BLITZ SERVICES LTD

Executive Summary

Blitz Services Ltd shows improving net assets and some investment in fixed assets but continues to operate with negative working capital, indicating liquidity pressure. Conditional credit approval is advised, subject to monitoring of cash flow and current liabilities. The company’s modest size and short trading history warrant caution, with attention to management’s ability to sustain operations and meet obligations.

BLITZ SERVICES LTD - Analysis Report

Company Number: 13559990

Analysis Date: 2025-07-20 15:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Blitz Services Ltd is an active private limited company in the micro category with a short trading history since 2021. Its net assets have improved significantly from £833 in 2023 to £18,798 in 2024, indicating growth and some capital injection or retained earnings accumulation. However, the company shows persistent net current liabilities (negative working capital of £25,288 in 2024) which signals potential short-term liquidity strain. Credit approval is recommended with conditions such as regular monitoring of cash flow and current liabilities, and possibly requiring personal guarantees or security due to the modest equity base and working capital deficits.

2. Financial Strength: The balance sheet shows a positive trend in fixed assets increasing from £6,122 to £44,522 and net assets growing substantially. This suggests some investment in longer-term assets which may support operations or expansion. However, current liabilities exceed current assets by a significant margin, indicating the company might rely on short-term financing or delayed creditor payments. Shareholders' funds remain low but have increased, showing some financial strengthening overall. The micro-entity size limits detailed financial disclosures, so risk assessment is constrained by limited data.

3. Cash Flow Assessment: Net current liabilities of £25,288 reflect negative working capital, raising concerns about the company's ability to meet short-term obligations from operating cash flow. The absence of a profit and loss statement limits visibility on operating profitability and cash generation. The company employs only 2 people, suggesting a lean cost base which might mitigate cash flow risks. Close attention to creditor payment terms and debtor collection cycles is advised. Liquidity improvements or additional capital injections would enhance creditworthiness.

4. Monitoring Points:

• Working capital position and changes in current liabilities
• Cash flow from operations and any evidence of profitability from future filings
• Management actions to improve liquidity or restructure short-term debts
• Any changes in ownership or director appointments that may impact governance
• Filing compliance and timely submission of accounts and confirmation statements