COVENTRY AUTO BODYWORX LTD

Executive Summary

Coventry Auto Bodyworx Ltd has shown a marked financial recovery with positive net assets and working capital as of the latest accounts, supporting a conditional credit approval. The company’s micro-entity scale and prior financial volatility warrant close monitoring of liquidity and operational cash flows. Credit exposure should be modest and reviewed regularly for any signs of stress or deterioration.

COVENTRY AUTO BODYWORX LTD - Analysis Report

Company Number: 12831133

Analysis Date: 2025-07-20 15:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Coventry Auto Bodyworx Ltd has demonstrated a positive turnaround in its financial position in the latest reported year ending 31 August 2024, moving from net liabilities of £3,347 in 2023 to net assets of £6,378 in 2024. This improvement reflects enhanced liquidity and a stronger balance sheet, which supports modest credit extension. However, the company remains small scale with limited fixed assets and a single employee, and its financial history shows prior periods of significant current liability pressure. Therefore, credit approval should be conditional on continued monitoring of liquidity and operational cash flow, with limits aligned to its micro-entity size and working capital capacity.

2. Financial Strength:
   The balance sheet shows a net asset position of £6,378 as at 31 August 2024, reversing from a negative £3,347 the prior year. Fixed assets are minimal (£3,862), indicating limited capital investment or collateral value. The most notable positive development is net current assets of £2,516, improving from a deficit of £7,637 in 2023, driven by a reduction in short-term creditors from £8,734 to £431 and a moderate increase in current assets to £2,085. Shareholders’ funds have recovered to £6,378, reflecting retained earnings or capital injections. Overall, the balance sheet is now stable but remains thin, typical for a micro-entity in the automotive repair sector.

3. Cash Flow Assessment:
   Current assets primarily consist of short-term receivables and cash equivalents totaling £2,085, against current liabilities of £431, providing a healthy working capital buffer. The company’s ability to generate positive net current assets indicates adequate liquidity to meet short-term obligations. However, the absence of detailed cash flow statements limits insight into operational cash generation and reliance on external financing. The single-employee structure suggests low overheads, which may support cash flow stability. Close attention should be paid to debtor collection and creditor payment terms going forward.

4. Monitoring Points:

• Maintain positive net current assets and avoid build-up of short-term liabilities.
• Monitor debtor aging and cash conversion cycle to ensure liquidity.
• Watch for fluctuations in fixed assets or capital expenditure that could strain cash resources.
• Track profitability trends as profit and loss details were not available but are important for sustainability.
• Observe any changes in ownership or director involvement, given the small management team.