Company Number: 13108409

Analysis Date: 2025-07-20 14:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Broadway Garage Services Ltd demonstrates a positive net asset position with modest equity growth year-over-year, indicating some financial stability. However, persistent net current liabilities and significant long-term creditors suggest potential liquidity constraints. Approval for credit facilities should be conditional on close monitoring of cash flow and working capital improvements, and possibly securing additional collateral or guarantees.

2. Financial Strength: The company holds fixed assets valued at £139,280 as of 31 January 2024, down from £163,030 the prior year, indicating some asset disposals or depreciation. Net assets increased from £13,388 in 2023 to £18,836 in 2024, reflecting retained earnings or capital injection. However, net current liabilities remain negative at approximately £20,774, driven by current liabilities exceeding current assets, highlighting short-term solvency risk. The presence of £98,750 creditors due after more than one year suggests long-term borrowing or deferred payments that may pressure future cash flows if not managed prudently.

3. Cash Flow Assessment: Current assets of £67,365 are insufficient to cover current liabilities of £88,139, leading to a working capital deficit. This indicates potential challenges in meeting short-term obligations without drawing on longer-term financing or generating improved operational cash flow. The company’s ability to service debt and pay suppliers timely depends on maintaining or increasing cash inflows from operations or restructuring payables. The stability of employee numbers (6) and the micro-entity status imply a small operation with limited financial buffer.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio trends to monitor short-term payment capacity.
• Working capital changes: Ongoing net current asset position to assess operational efficiency.
• Creditor aging: Review of creditor terms and any overdue payments.
• Cash flow from operations: To ensure sufficient internal funds for debt servicing.
• Fixed asset management: Asset utilization and replacement plans.
• Director and shareholder actions: Any capital injections or changes in control impacting financial stability.