B&S MOTORS LIMITED

Executive Summary

B&S MOTORS LIMITED is a very recently formed micro-entity with minimal net assets and narrow liquidity. The company’s financial position is stable but vulnerable due to the small equity base and limited operating history. Conditional credit approval is recommended with close monitoring of liquidity and trading performance to ensure ongoing repayment capability.

B&S MOTORS LIMITED - Analysis Report

Company Number: 15163875

Analysis Date: 2025-07-20 18:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   B&S MOTORS LIMITED is a newly incorporated micro-entity with very limited financial history and minimal net assets (£2,641). The company operates in the sale of used cars and light motor vehicles, a sector sensitive to economic cycles and consumer confidence. The current net assets are positive but marginal, indicating a very thin equity buffer. Given the nascent stage of the company and small scale of operations (average 1 employee), the credit approval should be conditional on continued monitoring of trading performance, cash flow stability, and timely filing of accounts and returns.

2. Financial Strength:
   The balance sheet shows current assets of £170,172 against current liabilities of £167,531, resulting in a modest positive net current asset position of £2,641. Total net assets equal £2,641, reflecting a minimal equity base consistent with a micro-entity start-up. There are no fixed assets reported, suggesting limited capital investment to date. The financial position is stable but fragile, with little room for absorbing unexpected losses or shocks.

3. Cash Flow Assessment:
   The company’s liquidity is narrowly positive with working capital of £2,641. While current assets sufficiently cover current liabilities, the close margin implies limited short-term liquidity cushion. As a start-up, cash flow forecasting and management will be critical to ensure the company can meet obligations and finance ongoing operations. There is no information on cash generated from operations or profit margins, so future cash flow certainty is unproven.

4. Monitoring Points:

• Timely submission of next annual accounts and confirmation statements to maintain compliance.
• Monitoring net current assets and cash flow generation to ensure liquidity remains positive.
• Watching for any increases in liabilities that may erode working capital.
• Tracking sales growth and profitability as trading history develops to assess credit risk evolution.
• Scrutiny on director’s financial stewardship, given sole control by Mr. Mohamed Shifan Mohamed Bari.